Prairie Business July 2015

July 2015

Helping Them Stay Home

Home health care providers face growing demand as region’s population ages, seeks independent living pg. 26

A New Option Medicinal marijuana facility set to open in Moorhead, Minn

pg. 30

When Hackers Hit How to respond to a security breach

pg. 34

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|INSIDE|

July 2015 VOL 16 ISSUE 7

DEPARTMENTS

FEATURES

6 Editor’s Note

BY KRIS BEVILL

The changing face of health care 8 Business Advice

BY MATTHEW D. MOHR

Seasonality

10 Technology

BY CAMILLE GRADE

Putting the “Midwest” in Midwest Mobile Summit 12 Health Care

BY DR. JEREMY GARDNER

Staying on course: Tips for golfing with joint pain 14 Cybercrime Technology options like those offered by GrandCARE Systems are expected to help alleviate worker shortages for the home health care industry. PHOTO: GRANDCARE SYSTEMS

BY KRISTINE LUNDE

Cybercrime: The biggest threat in banking 16 Prairie News

26 Helping Them Stay Home HEALTH CARE

Home health care providers face growing demand as region’s population ages, seeks independent living

30 MARIJUANA A New Option

Medicinal marijuana facility set to open in Moorhead, Minn

20 Prairie People 24 Business Insider The Networker 34 DIGITAL EXCLUSIVE: Information Technology When hackers hit 36 DIGITAL EXCLUSIVE: Megasite Game-changer?

40 Construction Corner Minot International Airport’s expanded terminal takes shape 44 Energy 46 Energy: Drilling Data 47 Business to Business 48 By the Numbers Follow us on Twitter https://twitter.com/PrairieBiz

The home health care industry provides a wide variety of services for individuals who prefer to remain living in their homes.

CORRECTION: An article in the June issue titled “Declining, but not drastically” inaccurately stated the percentage of North Dakotans with higher education degrees. North Dakota ranks among the top three states with more than 50 percent of the population between the ages of 25-44 possessing associate degrees.

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Prairie Business Magazine July 2015

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Next Month

The August issue of Prairie Business magazine will cover higher education’s efforts to encourage entrepreneurship. Other articles will highlight the use of wildlife crossings in highway engineering plans and growing interest in solar energy across the northern Plains.

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|EDITOR’S NOTE|

The changing face of health care

W

KRIS BEVILL

Editor kbevill@prairiebizmag.com

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Prairie Business Magazine July 2015

e’re addressing two very big topics in the health care industry in this issue: home health care for seniors and medical marijuana. As we were putting this issue together, it struck me that while these two topics may seem to be unrelated other than their shared industry, they both also illustrate quite well the rapid and major changes that providers and patients are experiencing in U.S. health care.

This month, Minnesota becomes the 23rd state to allow residents with certain medical conditions to be prescribed marijuana as a treatment. In “A new option,” staff writer Kayla Prasek speaks with Minnesota Medical Solutions, one of the state’s two approved distributors and operator of the Moorhead dispensary, to learn more about its preparations and plans for the Moorhead facility. She also gets input from local physicians on the newly available treatment option and whether they plan to prescribe it to their patients.

Home health care is one of those services that you really don’t think about until you need it. Last fall, my husband and I were in exactly this position after we unexpectedly found ourselves seeking help for a family member. It was an overwhelming, stressful and often frustrating experience, despite the many nice people we met along the way. I’ve since met several fellow care-seekers who shared very similar tales. If you haven’t yet experienced the need and searched for home health care or assisted living, chances are you will soon. As our population ages most of us will eventually find ourselves either in need of care or selecting a provider to care for a loved one. And while the home health care industry admits it is experiencing accelerated demand and simultaneous workforce shortages, many providers feel confident they will be able to keep pace with an increasing customer base, thanks in part to technology advancements. Read, “Helping Them Stay Home,” for more.

You’ll also notice a bonus publication with your issue this month. Corporate Communities highlights some of the companies in our region who are proud to say they provide great work environments for their employees and needed services for our region’s businesses. We hope you’ll take a look and see for yourself some of the unique ways these employers are striving to be the best.

Speaking of the best, we’re also excited to announce that we’re currently accepting nominations for this year’s 50 Best Places to Work. Visit our website, prairiebizmag.com, and click on the “50 Best Companies” tab to complete an anonymous employee satisfaction survey.

We’ll tally the results and announce the winners in our September issue. Remember, the more employees who participate, the better. Good luck!

Business Prairie

northern plains business resource

KORRIE WENZEL, Publisher KRIS BEVILL, Editor KAYLA PRASEK, Staff Writer BETH BOHLMAN, Circulation Manager KRIS WOLFF, Layout Design, Ad Design Sales Director:

JOHN FETSCH 701.212.1026 jfetsch@prairiebizmag.com Sales:

BRAD BOYD western ND/western SD 800.641.0683 bboyd@prairiebizmag.com NICHOLE ERTMAN eastern ND/western MN 800. 477.6572 ext. 1162 nertman@prairiebizmag.com Editor: KRIS BEVILL 701.306.8561 kbevill@prairiebizmag.com

|ADVERTISER DIRECTORY| 50 BEST PLACES TO WORK .................25

INDIGO SIGNWORKS ............................21

702 COMMUNICATIONS ........................ 9

JLG ARCHITECTS ...................................29

ADVANCED ENGINEERING/NEXUS ....11

KLJ ............................................................. 5

ALERUS CENTER ....................................43

LIGHTOWLER JOHNSON ASSOC. .......47

AVI SYSTEMS .........................................43

MEDICA...................................................11

BISMARCK AIRPORT ............................... 7

MIDCONTINENT ....................................15

BLUE CROSS BLUE SHIELD ..................13

MINOT AIRPORT ....................................45

BNC NATIONAL BANK ..........................47

MINOT AREA DEVELOPMENT ............... 2

CORPORATE TECHNOLOGIES .............21

ND DEPARTMENT OF COMMERCE ...... 3

DACOTAH BANK ...................................29

ND DEPT OF AGRICULTURE ................21

DACOTAH PAPER ..................................31

NDSU GRADUATE SCHOOL ................33

DAKOTA CARRIER NETWORK .............42

NETWORK CENTER ................................. 8

EIDE BAILLY ...........................................35

NORBY’S WORK PERKS ........................43

FM CHAMBER OF COMMERCE............43

SANFORD HEALTH ................................. 9

FORUM COMMUNICATIONS ...............23

SPECTRUM AEROMED..........................39

GATE CITY BANK ...................................19

SPHERION STAFFING ...........................17

GOLDEN WEST TECHNOLOGIES.........45

ULINE ......................................................41

ESSENTIA HEALTH ................................50

VALLEY DEVELOPMENT GROUP ........49

IMPACT DAKOTA ..................................17

Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203.

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

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

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|BUSINESS ADVICE|

Seasonality

BY MATTHEW D. MOHR

Adjusting operations for seasonal fluctuations in business is not an easy task. A stable, consistent year-round business is easier to manage due to predictability of needs and (hopefully) profits.

Our region has four major seasonal swings caused by agricultural activity and the weather. Spring is a time for planting, so businesses serving the agricultural sector often anticipate an upswing in activity. Elective services, such as some parts of health care, see a slowdown in the spring.

During the summer growing season and with warmer temperatures, many folks spend time vacationing, recreating and enjoying lake areas, so business tapers off for some and improves for others. Harvest time comes in fall, creating a completely different set of market conditions for the region.

Winter causes havoc for some enterprises and a bonus for others like snow removal and ice fishing. Predicting what will happen year to year or even day to day is a challenge.

A business must predict what people needs will be, what inventory to carry, and just about every other part of an operation must be adjusted to handle seasonal fluctuations.

We may have an early spring and warm summer one year so clothiers might sell a larger amount of swim suits.

The next year could be completely different. Inexperienced merchandisers would purchase too much swimwear or be caught short.

Business owners and managers with experience are much better at handling seasonal fluctuations due to having the knowledge and ability to anticipate what may happen.

In the past, temporary employees were much easier to find to help with seasonal business fluctuations, but this is not the case today throughout our region, so employee hiring is a more recent challenge.

When building systems and employees, the seasonal effect on our region will be anticipated by experienced entrepreneurs. Failing to anticipate seasonal business fluctuations can lead to trouble rather quickly and can be hard to come back from. PB Matthew D. Mohr CEO, Dacotah Paper Co. mmohr@dacotahpaper.com

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Prairie Business Magazine July 2015

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|TECHNOLOGY|

Putting the “Midwest” in Midwest Mobile Summit

BY CAMILLE GRADE

Camille Grade

10

W

hat do an accordion band, epic beards, and mobile technology have in common? All were featured at the 2015 Midwest Mobile Summit. The two-day conference, held in Fargo May 20-21 and organized by Myriad Mobile, brought 300 people together to connect with mobile strategy and mobile technology pioneers across the region. Mobile industry leaders, designers, and developers provided insight for attendees on how to utilize mobile for business and beyond.

Keynote presenters from across the nation talked at length about mobile’s business and social implications. Suneet Singh Tuli, CEO of DataWind, creator of the world’s cheapest tablet computer, brought a message of accessibility provided by mobile. With a target price point of $40, DataWind has received millions of orders. “I don’t care about creating the iPad killer,” he said. “I care about the three billion people who can afford this device.”

Jake Joraanstad, Myriad Mobile CEO, considers the Midwest Mobile Summit a unique opportunity for people to hear from internationally recognized mobile technology leaders. “BuzzFeed revolutionized how people consume content. DataWind allowed people of all income levels to access technology.

Target transformed the shopping experience with their Cartwheel app. And what’s the one thing they have in common? Mobile.”

But, why an entire conference around mobile technology? There are so many other areas of technology that are relevant to business and life, right?

According to GSMA, a global organization dedicated to tracking and researching mobile trends, half of the world’s population now has a mobile subscription — up from just one in five 10 years ago. By 2020 that number is expected to increase to 60 percent. Mobile is a cornerstone of the global economy, it empowers people, and it continues to scale rapidly.

Let’s apply that adoption rate locally. Growing up on a farm, I saw my dad spend countless hours

Prairie Business Magazine July 2015

in a tractor. Through technological advancements, including mobile technology applications and improved broadband networks, tractors eventually started to become autonomous. But even as farm work became easier to do through technology, my dad was missing an entire digital age because it didn’t fit with his lifestyle. The last thing he wanted to do after coming in from the field was sit on a computer.

And let’s be honest. As laborious as farming can be, it also involves much sitting around and waiting.

Waiting at the grain elevator. Waiting for a ride to the next field. Waiting for parts. Waiting for the next rain.

This is where mobile comes into play. My dad went from never having an email address straight to having a Facebook account. He completely skipped the PC generation. Why? Because it wasn’t portable. Or quite simply, because it wasn’t mobile. Now through his smartphone, he can check the markets, stay up to date on the weather, send field updates, take photos of crops for insurance claims, and so much more. Most exciting, he can stay up to date on the latest fishing reports and Facebook.

What does that kind of mobile accessibility bring to other industries? Classrooms? Hospitals?

Developing countries? One of the best comments of the Midwest Mobile Summit was said by speaker Mike Bollinger, founder of Livefront. “Mobile is not a device. Mobile is a lifestyle,” he said.

That’s why every May we dedicate two days to exploring how mobile can transform lives, businesses, and economies. Be sure to join us next May for the 2016 Midwest Mobile Summit in downtown Fargo. PB Camille Grade Communications, Marketing Manager Myriad Mobile cgrade@myriadmobile.com Twitter: @myriadmobile

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|HEALTH CARE|

Staying on course: Tips for golfing with joint pain

BY DR. JEREMY GARDNER

Dr. Jeremy Gardner

P

rofessional golfer Phil Mickelson was preparing to compete in the 2010 U.S. Open when, unexpectedly, his joints started to ache.

When the tests came back, Mickelson learned he had psoriatic arthritis. Genetics, the environment, viruses and the body’s immune system are all factors that might cause psoriatic arthritis. Mickelson has been back on his professional golf game for several years, thanks to early diagnosis and treatment.

Golf is a great way to stay active. It’s beneficial for strength, balance, coordination and range of motion. It’s also a popular way to network for business professionals, so staying in the game can be helpful in your professional endeavors. However, many golfers are playing with pain, such as tendinitis, sore muscles and arthritis. Swinging a golf club requires moving at a very high speed in a short amount of time, increasing the risk of injury. Keep in mind that it’s important to properly stretch and warm up before and after a round to reduce pain and injury. Stretching and strengthening can help keep you healthy and improve your game. Golfing affects the entire body. Improper form can affect multiple joints, with special consideration for the lead wrist, elbow, shoulder, lower back, hips and knees. Swing alterations, such as a shorter backswing or proper weight shift, may decrease wear and tear on the body.

Tips for Preventing Injury • The Lead Wrist - Don’t grip the club in a weak position (thumb down the top of the handle).

Instead, rotate your lead hand away from the target about 30 degrees.

• The Lead Elbow - Keep the arm straight and soft, but do not lock it.

• The Lead Shoulder - Turn more, swing less.

When your body stops turning, your arms should

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Prairie Business Magazine July 2015

stop swinging. Adopt this approach to prevent torn cartilage, especially in the rotator cuff.

• The Lead Knee - Promote more turning and less hip sliding by rotating your lead foot 30 degrees toward the target. Make sure the knee shifts in front of the hip early in the downswing.

• The Lower Back - Turn everything in unison.

The hips and shoulders should rotate together. A strained lower back is the most common golf injury, even leading to disc disease.

• The Hips - Keep shoulders square to the ground and abdominals fully engaged to provide control. This prevents incorrect body angles and strain on the spine, hips and shoulders.

Next Steps If you’ve tried these techniques and are still experiencing pain, it might be time to visit the orthopedics department. Experienced orthopedic providers can work with you to understand what’s causing your pain, and how to fix it. This might include physical therapy, or it could be time to consider joint replacement.

Procedures such as anterior approach hip replacement, which is available at Altru and other providers, allows for a smaller incision and less damage to muscles, resulting in less pain and faster recovery. With proper recovery time and physical therapy, you can get back to the links sooner. PB Dr. Jeremy Gardner Orthopedic surgeon Altru Health System Online: altru.org/gardner Twitter: @altruhealth

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Prairie Business Magazine February 2012

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|CYBERCRIME|

Cybercrime: The biggest threat in banking

BY KRISTINE LUNDE

N Kristiine Lunde

amed one of the greatest threats facing our country, cybercrime is increasing at an unprecedented, costly rate. The Federal Trade Commission estimates 10 million identity theft incidents occur every year. Large corporations like Target or Home Depot, smaller companies and financial institutions, even individuals often fall victim before knowing they are at risk. They face losing money, sensitive information, and consumer trust.

While large data breaches have topped headlines nationwide, 30 percent of all cyber attacks are targeted at small businesses, 250 employees or less, according to CNBC. One rapidly growing electronic crime causing problems among smaller businesses in our region is corporate account takeover. It’s a cybercrime method where thieves typically use malware, often by sending emails appearing to be from a trustworthy source, to obtain customers’ login credentials for corporate online banking accounts. Once an individual unknowingly installs their virus, the thieves can monitor, access and transfer funds from accounts. The scary part is by the time you realize you are a victim, the money is gone.

In 2012 alone, corporate account takeovers compromised 174 million records via email. That same year, Internet crime losses totaled $1.5 million in North Dakota and $4.7 million in Minnesota. Law enforcement agencies across both states have been proactive in their approach, now adding detectives and FBI agents solely dedicated to cybercrime prevention.

BY THE NUMBERS:

THE COSTS OF CYBERCRIME

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$371 Million:

Estimated losses due to corporate account takeover in 2015

$525 Million:

Estimated U.S. business losses annually

$100 Billion:

Total estimated U.S. losses due to cybercrime

$445 Billion:

Estimated global cost of cybercrime since 2014

Prairie Business Magazine July 2015

Dissecting Defense Methods Customers and employees of small businesses are attractive targets because they often have less security.

Their computers may not be updated with the latest antivirus software, users may be less aware, and they might not have the means to protect themselves. In our region, people are very trusting. They are more likely to give out information, have a strong desire to be helpful, and may not be as suspicious of ill intentions.

While cyber criminals get smarter and develop more creative strategies, business owners should not be afraid, but rather educated. Education and awareness are key to prevention. It is crucial to provide education and training for both employees and customers on existing or future threats. Next, formulate a business plan to protect and mitigate risks.

Most trusted sources, banks and government agencies will never reach out via email to ask for private information. All employees should know not to give out online banking credentials, even if the sender seems legitimate.

It is important to have an understanding of who you do business with, and avoid opening and responding to anything suspicious. If you suspect unusual activity, contact the bank and police.

Businesses should make sure to keep computers and networks secure. It is important to install and update spam filters, antivirus software and security systems, limit administrative rights, and use routers and firewalls to block unauthorized access. Additional defensive methods include using a dedicated computer for all financial transactions, avoiding public Internet access points, monitoring changes in computer performance and keeping a close eye on accounts. Businesses should review their account activity daily. They are not protected by the same regulations as consumers and do not have the typical 90-day window to dispute fraudulent activity.

Do business with trustworthy people and companies, and if you have doubts, ask questions. This will keep online banking safe and increase consumer trust within the financial industry.

Corporate account takeover is entirely preventable, if you’re willing to take the steps to protect yourself and your business. PB Kristine Lunde Deposit Product Specialist Lead Alerus kristine.lunde@alerus.com

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Prairie News

Industry News & Trends

Upgraded SDSU architecture/engineering hall to open in fall South Dakota State University held a dedication ceremony April 24 for its newly built 62,000-square-foot architecture, math and engineering building. Lew Brown, dean of the Jerome J. Lohr College of Engineering, dubbed the $17 million building the “final crown” of a 13-year period of upgrades for the college. The building houses the architecture department on the third floor, mathematics and statistics on the second floor and mechanical engineering, construction and operations management on the first floor. The South Dakota State University’s new architecture, math and engineering building will open for classes this fall. PHOTO: SOUTH DAKOTA STATE UNIVERSITY

ND DVR launches employee retention program The North Dakota Division of Vocational Rehabilitation recently launched an initiative called NDAdvantage to connect businesses with services that target employee retention. In a news release announcing the initiative, Russ Cusack, DVR director, said the NDAdvantage will provide employers with consultation on strategies and programs to help them retain workers at a time when businesses are competing for employees.

Partners in the initiative include the state’s commerce and public instruction departments, the North Dakota State Workforce Council, Job Service North Dakota, the North Dakota University System and Bismarck State College.

For more information, visit ndadvantage.com.

United Savings Credit Union expands United Savings Credit Union recently opened a 6,000-square-foot facility in downtown Fargo. According to Nicholaus Woodard, president and CEO, the new location was selected in part to shift the perception of credit unions in the eyes of the community and encourage new members to join. The financial cooperative now operates two locations in Fargo and one in Dilworth, Minn.

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Prairie Business Magazine July 2015

Bowman airport opens N.D. Lt. Gov. Drew Wrigley joined local, state and federal officials May 28 to commemorate the opening of the new Bowman County Municipal Airport. The $16 million airport, located four miles east of Bowman in western North Dakota, spans 400 acres and boasts the longest small general aviation runway in the state. Wrigley said the opening of the airport is a milestone in the state’s efforts to address the impacts of rapid population growth. “This new airport will attract and facilitate business, and provide a safe operating environment for medical personnel, agricultural operators, flight training and aircraft maintenance,” he said.

FUSE wins NDANO award FUSE North Dakota received the North Dakota Association of Nonprofit Organizations’ Partnership Building Award during the Nonprofit Leadership Conference held May 27 in Fargo. The award is given to an organization that demonstrates community leadership and has built partnerships within the North Dakota nonprofit sector.

FUSE North Dakota is a statewide anti-trafficking coalition which brings together advocates, direct service providers, law enforcement and other partners to combat human trafficking

building will open for classes in the fall.

and raise awareness about the issue and its prevalence in the state.

Women leaders raise more than $39K for local groups Thirty-seven participants of the Center for Technology & Business Women’s Leadership Program converted $3,700 in seed money into more than $39,000 in charitable donations over the course of the program’s eight-week philanthropic challenge. Working in small groups, the women raised cash donations and in-kind contributions for organizations in Minot, Mandan and Bismarck, N.D. The Women’s Leadership Program is a six-month program focused on expanding the professional, personal, community and health leadership skills for women. Over the last four years, 118 graduates have contributed more than $148,000 to their communities.

Eide Bailly adds Oklahoma firm Sartain Fischbein & Co., one of the largest local independent certified public accountant firms in Oklahoma, joined Eide Bailly LLP on June 1, bringing six partners and 32 staff members to the firm. Eide Bailly now operates 26 offices in 12 states and employees about 1,600 people, including 236 partners..

|PRAIRIE NEWS| Construction begins on Watford City Event Center Kraus-Anderson Construction Co. broke ground in May on a 261,000-squarefoot event center in Watford City, N.D. The $83 million facility, designed by JLG Architects, will feature a swimming pool and water park, a 22,000-square-foot field house, a 1,000-seat hockey arena and separate practice rink, a 3,000-seat arena for sporting events and concerts, a 12,000-square-foot gymnastics club and 10,000 square feet of convention space. Construction is expected to be complete in 2016.

The $83 million Watford City Event Center will include a large arena designed to host sporting events and concerts. Construction is expected to be complete in 2016. RENDERING: JLG ARCHITECTS

www.prairiebizmag.com

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|PRAIRIE NEWS| Prairie Lakes wins Women’s Choice Award Watertown,

S.D.-based

Prairie

Lakes Healthcare System has received the Women’s Choice Award in recognition of being one of the best hospitals for emergency care in the U.S. It is the second consecutive year the organization has received the award, which is given based on publically reported quality data and outcomes of care that are important to women. Of the 3,800 hospitals eligible for the award, 374 hospitals received the honor

Prairie Lakes Healthcare System emergency room staff receive national award for providing quality care in areas that are important to women. PHOTO: PRIAIRE LAKES HEALTHCARE SYSTEM

Lincoln County approves next step for DPCW project On May 18, the Lincoln County (S.D.) Planning Commission approved applications for five meteorological towers to be erected near Sioux Falls in southeastern South Dakota at the site of the proposed Dakota Power Community Wind project. If built as proposed, the $2 billion wind farm would be financed using a unique community-fund model and would be capable of producing 100 megawatts of energy, most of which would be delivered to East Coast markets via the Rock Island Clean Line.

Rob Johnson, founder and principal of Dakota Plains Energy Inc., which is developing the project, said in late May that a group opposing the wind farm had filed an appeal with Lincoln County in opposition of the meteorological towers, but a date had not yet been set for the hearing. If the DPCW is allowed to proceed, he expects the wind farm could be complete in 2018.

Coldspring expands to Bismarck In response to growing demand for construction products and services in North Dakota,

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Prairie Business Magazine July 2015

Cold Spring, Minn.-based Coldspring, one of the largest quarriers and natural stone manufacturers in the U.S., has opened a 6,000-square-foot showroom in Bismarck. The showroom will allow customers to select granite and other natural stone for a variety of interior and exterior applications, according to the company.

Coldspring is a family-owned company with more than 100 years of experience in the natural stone industry.

Christianson’s Business Furniture named best in class Fargo-based Christianson’s Business Furniture has earned Haworth Inc.’s 2015 Best in Class designation in recognition of its exceptional performance in operational excellence, customer satisfaction, sales, marketing, brand development and enterprise development. Christianson’s is one of 26 dealerships to be given the award from Haworth, a maker of workplace furniture. This is the third time Christianson’s has earned the designation.

CoCo closes in Fargo CoCo, a Minneapolis-based collaborative and co-working space provider, has closed its

Fargo location. The company operated a space in downtown Fargo for about 10 months, but failed to gain the number of memberships it needed to continue operating. The company continues to operate locations in Minneapolis and St. Paul.

KeyMedia Solutions expands in Sioux Falls KeyMedia Solutions, a Sioux Falls, S.D.based digital marketing agency, recently purchased a 4,600-square-foot building in Sioux Falls to serve as its headquarters. Korena Keys launched the company in 2011 with a focus on providing digital marketing for small- to-midsized businesses. The company topped $1 million in annual revenues in 2013, a milestone which Keys says motivates her to continue focusing on small businesses. “I look at what it took for us to get where we are today, and want to help other entrepreneurial companies reach that too,” she said in a news release.

Sterling Computers receives security award Dakota Dunes, S.D.-based Sterling Computers Corp. recently received the Govies Government Security Award from Security

|PRAIRIE NEWS| Choice Financial named top workplace for young professionals Choice Financial was named the Young Professionals Network Best Place to Work as part of the 2015 Fargo Moorhead West Fargo Chamber of Commerce Chamber Choice Awards. Award recipients were selected by a panel of independent judges from the regional business community based upon their accomplishments in growth, innovation, creativity, community involvement and unique achievements. Company culture and environment for professional growth were factors in Choice Financial’s selection as a top employer for young professionals.

Choice Financial team members accept the Young Professionals Best Place to Work award during the Fargo Moorhead West Fargo Chamber of Commerce’s 2015 Chamber Choice Awards event. PHOTO: CHOICE FINANCIAL

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Midcontinent breaks ground on West Fargo offices Midcontinent Communications held a groundbreaking ceremony May 28 for its expanded West Fargo presence, including more warehouse space, a call center, training rooms and studio space which will be used to produce local sports programming. The estimated $360,000 addition will allow the company to add 120 employees over the next five years to meet growing demand. According to Justin Forde, the company’s public affairs director in North Dakota, Midcontinent is investing about $72 million in Fargo through 2016 in order to offer its Internet, cable TV and other services to customers there. The company is investing a total of $100 million in infrastructure throughout North Dakota.

% 3.35 AS LOW AS

APR*

LOANS

WE HAVE YOUR RATE. NOW GO GET YOUR RIDE. *Discounted rate available with automatic payment plan using a Gate City Bank checking account.

Offer not valid on Gate City Bank refinances or lines of credit. Other terms and conditions may apply.

We’re ready to make your life better.

Contact us today at (701) 293-2400 or (800) 423-3344. gatecitybank.com 34 locations in North Dakota and western Minnesota.

www.prairiebizmag.com

19

|PRAIRIE PEOPLE| Ulteig names Jaeger CEO

Doug Jaeger

Doug Jaeger has been named CEO of engineering firm Ulteig. He succeeds Eric Michel, who announced plans to transition out of the role in January. Jaeger most recently served as principal of AMP Advisors, where he provided advisory and consulting services on strategy, development and acquisitions. Prior to that, he served as CEO of Adolfson & Peterson Inc. and served in a number of leadership roles at Xcel Energy.

Patterson Thuente IP hires associate attorney

Jumi Kassim

Intellectual property law firm Patterson Thuente IP recently hired patent attorney Jumi Kassim to handle patent preparation and prosecution for companies with software, communications, medical device and other computer- and electronics-related technologies.

Kassim previously worked for 11 years as a software and systems engineer for Boston Scientific Corp. She is also a certified information systems security professional.

Prasek joins Prairie Business

Kayla Prasek

Kayla Prasek has joined Prairie Business magazine as a staff writer. Her primary responsibilities will be writing for the magazine and managing the magazine’s website and social media activities.

Prasek worked most recently as the city reporter at the Watertown Public Opinion in Watertown, S.D. She graduated from the University of South Dakota in 2014 with degrees in political science and contemporary media and journalism.

SD Board of Regents selects new leader

Michael Rush

Van Zee to lead DWU entrepreneurship center

Ryan Van Zee

Dakota Wesleyan University has hired Ryan Van Zee as director of its Kelley Center for Entrepreneurship. He replaces Fredel Thomas, who accepted a position as dean of admissions at DWU. Before joining DWU, Van Zee served as director of entrepreneurial studies at the University of Sioux Falls since 2008. In that role, he directed the Center for Entrepreneurial Leadership and Innovation as well as designed or taught classes in business, management, innovation, finance and marketing.

NDARE elects president

Mindi Schmitz

Mindi Schmitz has been elected president of the North Dakota Alliance for Renewable Energy.

Schmitz is a government relations specialist working in the Environmental Law & Policy Center’s Jamestown, N.D., office, focusing on renewable energy development policies and the implementation of the Farm Bill’s clean energy development programs. NDARE advocates for renewable energy and energy efficiency in North Dakota.

Michael Rush has been named executive director and CEO of the South Dakota Board of Regents. He succeeds Jack Warner, who retired after serving in the role for six years.

Rush previously served as executive director of the Idaho State Board of Education/Board of Regents for eight years. Prior to that, he served as an administrator, director of research and state supervisor for Idaho’s Division of Vocational Education. He holds a doctorate of education from Virginia Polytechnic Institute and State University, as well as master’s and bachelor’s degrees in agricultural education from the University of Idaho.

Benson joins Heartland Trust Co.

Jon Benson

Jon Benson has joined Heartland Trust Co., where he works primarily with personal trusts administration, charitable trusts, IRA rollovers, investments and estate settlement. Benson has more than 25 years of comprehensive personal, business and financial services experience. His previous roles include vice president and private banking relationship manager with Wells Fargo and executive director of the Essentia Health Regional Foundation, where he worked closely with donors and families to assist them with philanthropic endeavors.

(conitnued on page 22)

20

Prairie Business Magazine July 2015

Setting the bar for work environments and in-demand products/services

TOP ARCHITECTURE FIRM IN THE US Engineering News-Record, Zweig Group, PSMJ, Inc. Magazine, Architectural Record, Minneapolis-St. Paul Business Journal

BEST PLACE TO WORK Prairie Business, Grow Grand, Zweig Group

JLG ROCKS 100% Employee Owned, 26 Years, 100 Professionals, 9 Offices, 101 Design Awards, Galactic Impact

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OUR MISSION: To enrich the lives of our employees and exceed the expectations of our clients.

Having a job that you love coming to everyday is important to our culture at Obermiller Nelson Engineering. We care about our employees and their happiness.

“The goal is not just to hire people who need a job, it’s to hire people who believe what you believe.” ~ Simon Sinek

Caring About People • Being Impeccable With Your Word WE BELIEVE IN...

Always Doing Your Best • Challenging the Status Quo Providing Top Notch Service • Personal and Professional Growth

So...what do you believe in?

BUILDING SYSTEMS

obernel.com MINNEAPOLIS

FARGO

CONSULTANTS GRAND FORKS

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Hello Progress Bridging the gap | between idea + achievement

We make your ideal possible

From the moment you join our family, we invest in you as much as you invest in us—encouraging you to take charge of your career while meeting you with expansive opportunities at every step along the way.

WE BRING TOGETHER THE RIGHT TALENT FOR THE RIGHT SOLUTIONS • We maintain a strong focus on employee training and career developments • Our high retention rate speaks for itself—many HDR employees count their time with the company in decades rather than years • HDR’s Total Rewards program was developed to take care of employees and their families • Many employees join HDR based on the experiences they had with the company while working for a peer or partner

OUR STORY We believe that the way we work can add meaning and value to the world.

That ideas inspire positive change. That coloring outside the lines can illuminate fresh perspectives. And that small details yield important realizations. Above all, we believe that collaboration is the best way forward.

We specialize in engineering, architecture, environmental and construction services. While we are most well-known for adding beauty and structure to communities through high-performance buildings and smart infrastructure, we provide much more than that. We create an unshakable foundation for progress because our multidisciplinary teams also include scientists, economists, builders, analysts and artists.

Our nearly 10,000 employees, working in 225 locations around the world, push open the doors to what’s possible each and every day. This is where great begins.

WHO HDR

WHAT

Engineering, Architecture and Environmental Firm

WHERE

HDR has more than 225 offices around the world. Regionally we serve clients from offices in: • Bismarck, ND • Fargo, ND • Sioux Falls, SD • Rapid City, SD • Cheyenne, WY • Gillette, WY • Lander, WY

WHY

HDR is consistently ranked among the top firms by leading industry publications, including Engineering News-Record and Architectural Record. Our responsive approach builds highly collaborative, crosscompany teams that open new doors and provide ever-changing opportunities for our employees.

“We collaborate with our clients to grow their successes, to push boundaries, and to uncover new possibilies.”

J. Mike Coleman, PE & LS, Vice President

Both as individuals and a company, we take pride in making our community even better through volunteering our time, donating our funds and supporting local charitable efforts.

hdrinc.com

AWESOME YOU CAN’T SPELL AWESOME WITHOUT AE

What is it about Ackerman-Estvold? We’ve asked ourselves that very question.

Between the engineers and architects, construction and administration, seasonal and interns; we’ve got some awesome mojo.

Sure, the engineers at Ackerman-Estvold have the ability to work on some unique and challenging projects. Interns get real experiences in the field and on-site. And because we are a mid-sized local firm, employees within both our locations experience hands-on, community impacting work.

But, there is only one thing we keep coming back to; we’ve got truly awesome mojo that you won’t understand until you get here. Couple that mojo with cool projects, brainstorming sessions, teamwork and a honest desire to make a difference in our communities. That’s just a taste of what makes AckermanEstvold great.

Flexibility, food, laughter and plentiful coffee may help a bit, too...

Experience the awesome with us! Visit our careers page on our website or look for us on Facebook and Twitter.

MINOT | WILLISTON

WWW.ACKERMAN-ESTVOLD.COM

Two Days 2Fairs www.jobsnd.com

Sept. 23rd-24th

Grand Williston Hotel & Conference Center All Industries

Open to all employers, and all positions: All Industries

Sponsored By

Job Service North Dakota Williston Economic Development

Wednesday Thursday Area Sept. 23rd Sept. 24th Williston Chamber of Commerce 2pm-6pm 2pm-6pm Williston Herald Grand Williston Open to Open to & Conference all employers, all employers, Hotel Center and all and all Gaffaney’s positions.

Total Office Source positions.

To register and reserve your space for the Job Fair, go to:

www.WillistonDevelopment.com/JobFair

Choose your business location well.

Minot. The right kind There’s no better region than Minot, North Dakota for you to invest in your growing business — in a great place to call home.

Growing mid-sized city 10,000 new people in past 5 years Excellent schools with recent 5% annual growth International airport with new terminal (opening in January 2016) Thousands of new homes and apartments

You’ll be spending a lot of time there.

of city for your business.

Vibrant downtown University with 100+ year history Regional trade center for the plains Many recreation and entertainment options Rail-served property available Gateway to the Bakken

AREA DEVELOPMENT CORPORATION

www.MinotUSA.com

COLLABORATIVE WORK ENVIRONMENT. Gate City Bank has created a one-of-a-kind collaborative work environment that focuses on centering corporate leadership with employees to develop a modern activity based workplace. As part of the overall project, a welcoming, unique coffee bar space in the corporate office is open to every employee and gives the perfect opportunity to relax and interact with fellow employees.

COMMUNITY.

Gate City Bank’s culture is to provide a better way of life for our customers and our 520 employees.

As a company, we are dedicated to increasing engagement while creating an exciting culture for our team members. We achieve this through a collaborative work environment, fun days, and community involvement.

FUN! To encourage creativity, Gate City Bank incorporates fun days into the work schedule each week. Fun days can range from Jeans and Tennis Shoes Day, to 80’s Day, and National Tortilla Chip Day. Fun days allow our team members to relate to each other on levels they would not have encountered in a typical working environment.

It is in Gate City Bank’s mission and culture to give back to the communities we serve through charitable giving and volunteerism. In fulfilling its mission, Gate City Bank offers a Matching Gifts Program and an Employee Volunteer Time Match Program to match employees’ financial donations and the value of their volunteer hours to charitable organizations.

Along with this culture of service and community, Gate City Bank recognizes the difference that can be made in our communities by encouraging and helping our employees give back. Gate City Bank has incorporated Gate City Bank Acts of Kindness (#GCBActsofKindness) into our culture. Each office or department is assigned one week of the year to surprise local organizations or individuals with random acts of kindness.

“Gate City Bank recognizes that culture is key in creating a unique place to work. We work every day to engage our team members in different ways beyond everyday tasks, jobs, and meetings. For us, a better way of life means a better way to work.”

- Kari Tews, Training & Development Specialist

(701) 293-2400 • (800) 423-3344 • gatecitybank.com

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We always conduct business with integrity and trust We deliver what we promise We are driven to be the best Our people care We build trusted relationships – internally and externally 

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Meet Barry Traub!

Drafter HOW LONG HAVE YOU WORKED FOR WELLS CONCRETE? I have worked for Wells Concrete for 3 years. At my previous job, I was commuting an hour to work and I decided to take the opportunity presented to me at Wells Concrete because it was a local business that I knew had a great reputation and a long standing history.

WHAT ARE YOU PASSIONATE ABOUT? Family is always been first for me. Wells Concrete is committed to providing a work/ life balance which is very important to me. I am able to have a career and not miss important family milestones such as my children’s sporting events, graduations, and other school programs.

I also appreciate the retention of employees. We have employees who have been with the company for more than 40 years and they share their wealth of knowledge with us on a daily basis. We are constantly working with different departments internally and architects, engineers, and general contractors externally. It really seems like more of a family than just co-workers.

WHAT DO YOU MOST ENJOY ABOUT YOUR WORK WITH WELLS CONCRETE? I enjoy working at Wells Concrete because of the trust my managers have in me. I am able to problem solve and make decisions for general contractors when they are in a bind and need an answer as soon as possible.

I also appreciate the benefits the company offers that are traditional and nontraditional such as the Race/Marathon program where if you participate in a race, Wells Concrete will pay for your registration and give you PTO for participating!

WHAT KEEPS YOU MOTIVATED AT WELLS CONCRETE? What keeps me motivated is being able to see the job from start to finish. I am involved in the beginning stages and during production as well. When the building is completely finished, it is great to see the finally product and to see our vision become a reality.

HISTORY Wells Concrete has been building and installing reliable, competitively superior concrete products that are leading-edge in quality, cost and customer satisfaction through the integration of experienced people, production technology and industry standards. Architects, building owners, developers and contractors throughout the Upper Midwest rely on Wells Concrete to provide architectural and structural precast concrete products.

LOCATIONS Albany, MN Des Moines, IA Fargo, ND Grand Forks, ND Maple Grove, MN Wells, MN Winnipeg, MB

Digi-Key Electronics was started in 1972 with the intent of providing hobbyists with easy access to electronic components. From these humble beginnings, Digi-Key has grown into the 7th largest electronic component distributor in the world, consistently ranked at the #1 Most Preferred Distributor in independent surveys.

Based in the small town of Thief River Falls, Minnesota, employees enjoy world-class career opportunities, competitive compensation, and an outstanding benefits program. Additionally, through various outreach programs, Digi-Key is committed to making a positive impact in Thief River Falls and the surrounding communities.

Netherlands Nordic Region Eastern Europe

London

South Korea

Southern Europe Thief River Falls, MN

Munich Israel

Japan Shanghai Hong Kong

Headquarters Service Center Sales Office

OVER 3,300 QUALITY EMPLOYEES

1,000,000+ SQ. FEET

16,000+ PACKAGES

$1.76+

SHIPPED DAILY

BILLION

IN ANNUAL 3,000,000 ORDERS GLOBAL SALES PROCESSED ANNUALLY

COMPANY-ENCOURAGED VOLUNTEER OPPORTUNITIES

BA L A N C I N G WO R K A N D L I F E

J e n n i e K r a u s e a n d h e r f a m i l y.

Balancing the demands of a fast-paced career and a young family is not an easy task. Like many, Jennie Krause, a professional engineer at KLJ, an engineering, surveying and planning firm, is always seeking to successfully integrate the two.

Krause began her career at KLJ after graduating from South Dakota School of Mines and Technology with a bachelor’s degree in civil engineering. “I initially chose KLJ because I had always heard it was a great company to work for and they offered exceptional benefits,” said Krause.

After more than a decade with the company, Krause says that KLJ has allowed her to not only advance in her career, but the opportunity to also be successful at home.

The company has grown significantly over the years, expanding services and geographies; and at the same time Krause’s position has evolved both at work and at home. “Today I am still an engineer and have recently switched my engineering focus from transportation to oilfield services, in addition to being a wife and a mother of two daughters — ages 1 and 2,” said Krause.

This is where the juggling act gets difficult for many. Krause says one of the most valuable lessons she has learned is that you cannot please everyone all the time, and be present where you are.

JENNIE KRAUSE

“My supervisor has always been supportive of my role at work and at home. I am encouraged to take on new challenges while also being allowed some flexibility in my schedule so I can meet the needs of my family,” said Krause.

KLJ’s culture is unique as it drives employees to set their own path for advancement. “I learned that if you develop good relationships, stay open to new opportunities and work hard everything else will follow,” said Krause.

The company is employee-owned which supports a collaborative environment and shared success. Throughout her career at KLJ Krause says KLJ’s flexibility has helped accommodate her busy family life while still allowing her to set her own path for advancement.

Krause states many employees at KLJ have started their careers with the company and retired with the company.

“The people that work here really care about the company and the clients we serve.”

It has always been instilled in me, first ask what can we do to help — whether it is a coworker or a client — it’s just what we do here.”

Learn more about our services and explore career opportunities at kljeng.com

WHAT IS PROTECTING YOUR PEOPLE AND ASSETS WORTH? zulafly.com WHAT IS ZULAFLY? ZulaFly’s software solution, Fuzion, is non-industry specific, providing Staff Safety, Patient and Resident Locating, Asset Tracking and Management, Temperature Monitoring, and Mobility across multiple industries.

Fuzion allows each user to quickly customize dashboard views in a user-friendly manner.

See your data real-time or historically.

Fuzion is a Real-Time Locating System much like an indoor GPS system. Our solution is an ideal fit for Health care, Education, Light Manufacturing, Hospitality and Casinos. One aspect that these industries have in common is they want to protect the people inside the facility and know where equipment and assets are when needed. The solution provides staff members with a staff tag that has a button press, and fits right on their lanyard. Pushing the button can send an e-mail, text or push notification (iPhone message) to anyone inside or outside of the facility in real-time, letting the recipient know who is asking for help and where they are located. By placing small asset tracking tags on equipment, we can help reduce theft, over-purchasing and also save staff the time locating items.

Fuzion is a real-time data gathering system that integrates data from other systems and presents it in a customizable, easy to use, user interface. Much of the data consists of real-time locating systems (RTLS), RFID and GPS data; however, any external data source that provides a means to export data can be incorporated. The non-industry specific platform design, allows each customer the independence and ability to customize the solution to fit their needs. Fuzion provides the ability to report on all data that is collected and flexibility to tailor the verbiage in the solution to match their own.

Customer service is our top priority along with absolute commitment to going above and beyond for each customer.

WHY ZULAFLY?

Fuzion’s mobile app allows a user to see what’s going on within their facility without having to be on-site.

Having a solution that can improve safety in multiple industries is core to who we are. Our school systems face a magnitude of varying issues each year. If a violent situation occurs with a student, parent or an unwelcome visitor, staff can get assistance from anywhere by pressing the button on their staff badge. Administration can monitor visitors throughout the campus and be notified if they are in areas of the school where they should not be. In a natural disaster take the guess work out of locating people by quickly viewing the map. In the Hospitality industry, staff are in situations where they are alone and unable to call for help. Fuzion provides them the ability to quickly and discretely call for help by alerting security of their name and location. Help prevent theft by getting notified if an asset is in a restricted area or has been detected by an exit. What is protecting your people and assets worth to you?

While there are companies that offer RTLS or GPS, ZulaFly is unique in that we offer one solution that does both. Fuzion can alert you that a vehicle is moving during off hours, while providing you location information on people and equipment inside the facility and capital assets at a job site.

Let us be your fly on the wall.

Now Hiring in Jamestown, North Dakota Join our Crew and Watch Your Career Soar!

• Precision Painting Technicians • Manufacturing Technicians • Quality Control Inspectors • Maintenance Mechanics • Assembly Technicians • Process Technicians • Machinists • Engineers

• Great Pay & (Sign–on Bonuses) • Great Benefit Packages • Great Career Growth Plans • Great Community Involvement • A Great Place to Work!

UTC Aerospace Systems – On The Move You Bring the Brain and We Will Train!

WWW.utc.com/careers

001269619r1

www.prairiebizmag.com

21

|PRAIRIE PEOPLE| (conitnued from page 20)

Michael Domitrovich

Brad Barth

Domitrovich to lead new Houston Engineering service

Berg named Spherion franchise owner of the year

Michael Domitrovich has joined Houston Engineering as director of its newly created urban and community planning service.

Domitrovich worked for the city of Fargo for 22 years and has more than 35 years of experience in municipal and land planning. He holds a bachelor’s degree in architectural studies from North Dakota State University.

Jill Berg, owner of Spherion Staffing Service’s North Dakota offices, was recently named the 2015 franchise owner of the year. She also received the president’s award, which is given to owners who have created consistent revenue and gross profit growth over the past three years. Berg has worked with Spherion for more than 20 years and manages a team of 21 people across four offices.

Jill Berg

Barth named WCI president/CEO

Enventis adds Nelson

Brad Barth has been named president/CEO of West Central Initiative by the WCI board of directors. In this role, he will lead, direct and manage the organization and guide its strategic direction. He will also serve as WCI’s spokesperson and represent the west-central region to the greater state of Minnesota.

Before joining WCI, Barth served as executive director of the North Dakota State College of Science Foundation in Wahpeton, N.D. Prior to that, he was the director of the Small Business Center at Alexandria Community and Technical College in Alexandria, Minn.

Enventis, a Consolidated Communications company, has added Nancy Nelson as a senior account executive in its Fargo office. In this role, Nelson will focus on selling fiber-based communications services and other network solutions to business customers. She has more than 20 years of experience in the telecommunications industry.

Bob Berman

Cory Finneman

Nancy Nelson

Darcy Volk

KLJ Solutions adds 3 vice presidents KLJ Solutions recently added three vice president roles tasked with designing and implementing strategies to advance the organization’s capabilities across KLJ’s portfolio.

Bob Berman has been hired as vice president of human resources and will focus on talent acquisition among other HR duties. He previously worked at Eastman Kodak Co. for 30 years.

Cory Finneman has accepted the role of vice president of client services and will focus on opportunities related to client relationships, marketing and research, branding and communication and business development. He has worked for KLJ for more than six years, most recently in corporate planning.

Darcy Volk has been hired as vice president of processes and systems. She will lead system data and security, knowledge-sharing, system and software integration, processes creation and platform identification. She previously served as director of shared transaction processing services for MDU Resource Group Inc.

22

Prairie Business Magazine July 2015

www.prairiebizmag.com

23

|BUSINESS INSIDER|

Tom Rolfstad

The Networker Former Williston economic development director puts worldwide connections to work

BY KRIS BEVILL

O

nly a few minutes into an interview with Tom Rolfstad, the interviewer has become the interviewee: “So where are you from originally? What’s your family’s last name? Oh, sure, I know ...”

After spending 35 years in economic development - the last 25 of them as executive director of Williston (N.D.) Economic Development (WED) - making connections has become second nature for Rolfstad.

A self-described networker with contacts stretching around the world, the North Dakota native is an architect by training, but he says his interest in civics and community led him to apply his eye for design to the conceptual world of economic development instead, a career which technically ended last fall with his retirement from WED. While the highs and lows were many throughout his career, he says it is the many valuable relationships made through decades of development

24

Prairie Business Magazine July 2015

work that he is most proud of. And while he may have retired from public work, Rolfstad is far from retired, choosing instead to capitalize on his extensive network as a development consultant and venture capitalist.

In January, Rolfstad launched the Rolfstad Group with a goal of connecting developers and investors with projects in North Dakota, serving as a concierge of sorts for outside interests looking to invest in the state and in need of local connections in order to be successful.

“Today there’s money - New York kind of money - that wants to be out here investing in the Bakken,” he says. “But it’s not as though that money only wants to be in the Bakken. I think it’s an opportunity for all of North Dakota and maybe the entire Midwest to kind of grow up and be part of the bigger economy that’s out there that attracts investment from all over the world.”

North Dakotans have historically done business primarily with family or people they have a personal

|BUSINESS INSIDER| connection with, making it difficult for “outsiders” to get in on the action.

Rolfstad seeks to be the local connection who helps facilitate deals, but he stresses that his motivation for launching the Rolfstad Group isn’t his own potential for profit but rather a desire to continue growing the state’s economy. “We have a tremendous tax climate and the Bakken is a catalyst for tremendous growth, so how can we capitalize on that to move North Dakota beyond being an agricultural state to become a leader in the world economy?” he says.

Technology could play a vital role in advancing both the state’s oil industry and its agriculture industry. Rolfstad sees similarities in the types of technologies that could advance both industries, and he’s taken an interest in helping to foster some of the most promising possibilities. In January, he signed on as a venture partner with Fargobased Linn Grove Ventures, a venture capital fund focused primarily on opportunities that apply technology to improve the agriculture and health care industries. Dan Hodgson, managing director of the firm, says Rolfstad’s three decades of experience with agriculture and oil in western North Dakota, and the contacts that go with it, provide unique expertise to the firm. “He’s seen, and has a network to see, many things,” Hodgson says. “So in a market where technology is now being applied to increase efficiency, in agriculture and well as in oil, it makes sense for both investors and people with expertise across North Dakota to team up to find best opportunities.”

Meanwhile, the results of Rolfstad’s quarter-century of economic development continue to be realized in Williston. Shawn Wenko, who

served as assistant executive director of WED for seven years before taking over Rolfstad’s role in November, credits Rolfstad for helping to establish a market for pulse crops in western North Dakota, for example, and myriad other projects that he says will continue to be realized for years to come. “Tom was here at a time when you almost couldn’t get anything going in the area of economic development for Williston, or western North Dakota for that matter,” he says. “He’s seen both ends of the spectrum - when it was ice cold to when it’s red hot. He’s a tremendous advocate of the agriculture sector, he’s a tremendous advocate of the oil and gas sector. Some of the stuff he worked on, we’re still seeing the fruits of that labor.”

The pendulum may be swinging a bit from the red hot side of action in the Bakken currently, but Rolfstad quickly points out the benefits of a slowdown - reduced housing and construction costs, an extended economic benefit, and a chance for developers to breath after five years of running ragged. “At the same time, the industry is a laissaz-faire type of economy and you really can’t tell it how to behave, so you have to ride the waves as they come in,” he says. “While maybe the waves are waning right now, I think they’ll be waxing before long.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

Do you work for a great company?

Business

2015

Prairie

%(67

50

&203$1,(6

STUDIES SHOW

companies that boost employee morale enjoy lower turnover, better financial performance than industry peers, improved track records on safety and higher quality job applicants.

Prairie Business

will salute the 50 Best Places to Work in the September issue. The top 25 small companies* and the top 25 large companies** will be featured.

NOMINATE

your company at prairiebizmag.com by clicking on the BEST PLACES TO WORK tab.

Nominate your company through an anonymous employee satisfaction survey. Companies will be rated in areas including work environment, employee benefits and employee happiness. Consideration will be given to the number of nominations received per company. Only for-profit companies in the Prairie Business readership area are eligible. Deadline is July 31,2015. *(99 or fewer full-time employees) **(100+ full-time employees)

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25

|HEALTH CARE|

Sheila Mihaylov, a physical therapist for Fargo-based Ethos Home Care, consults with a patient in her Fargo home on June 12, 2015. Demands for home health care are rising as more seniors seek ways to remain living at home as long as possible. PHOTO: PRAIRIE BUSINESS MAGAZINE

26

Prairie Business Magazine July 2015

|HEALTH CARE|

Helping Them Stay Home

Home health care providers face growing demand as region’s population ages, seeks independent living

BY KRIS BEVILL

T

he home health care industry is evolving, not unlike other sectors of health care, but in regions like the northern Plains, where much of the population is in the 65 and older age range, home health care providers are uniquely faced with accelerating demand as a growing number of seniors seek out ways to remain living at home as long as possible. This new and growing demand, combined with a region-wide health care worker shortage, means the fairly young home health care industry is often racing to keep up with patient loads and regulations, but providers say they are confident they will continue to meet demand, thanks in part to new methods of care delivery.

Industry Standards Types of home care providers range widely from non-medical companion organizations to medical caregivers, and organizations can vary greatly in the number of staff employed and services offered.

For consumers, this complexity can make choosing a provider overwhelming and the literature provided to assist decision makers is often just as confusing as the process itself.

Recognizing a need for more general information on the topic, the Better Business Bureau of Minnesota and North Dakota hosted a series of meetings with industry members last winter to develop an easily digestible set of consumer tips and industry best practices.

Karen Thompson, advertising review manager at the BBB, says the group researched the industry prior to the meetings and found there wasn’t much information readily available for consumers. The BBB felt it was important to provide that service to seniors and their families, and while the industry is already regulated, the group decided it was worthwhile to also compile best practices for the industry.

The resulting set of about two dozen best practices tips was mailed to approximately 1,400 providers in Minnesota and North Dakota, according to Thompson. The BBB has also made the best practices and consumer tips available on its website - bbb.org.

Industry members say the best practices and tips are a good starting point, but add that many providers already abide by similar standards. “I’m hoping we can do better and go beyond those basic best practices,” says Patti Cullen, president and CEO of Care Providers of Minnesota, a nonprofit health care industry association.

Cullen says there are currently about 1,600 home care providers in Minnesota, ranging from individuals providing care for loved ones to large providers. About 300 of Care Providers’ 800 members are home health care providers. The most frequent complaints her group’s home care members receive from clients revolve around the cost of care, staffing shortages and staff turnover, and she notes that

staffing issues are likely to continue as demand for home health care only increases in the future. “We’ve got 60,000 seniors turning 65 every year,” Cullen says. “The vast majority of seniors want to stay home and we’re not going to have enough workers to serve all these seniors in small settings.”

Technology to the Rescue Cullen says there are several initiatives that could help provide more workers for the industry including training for new Americans and older workers, and offering more hands-on opportunities for college students. She also suggests that varying approaches to care will be necessary and useful in meeting demand. Congregate settings allow fewer workers to care for more patients, for example. She also points to technology as a great potential aid in allowing seniors to remain in their home with limited personnel visits.

“There’s no one master solution. I think it’s a series of bits and pieces that we have to cobble together to address it in the future,” she says.

Anne Major, president of Fargo-based Ethos Home Care, agrees that technology can aid the industry greatly in confronting staffing challenges while providing top-notch care to patients.

Ethos was formed last year through a partnership between Fargo’s Bethany Retirement Living, Moorhead, Minn.-based Eventide Senior Living Communities and Alexandria, Minn.-based Knute Nelson with the specific purpose of providing home health care to patients in the Fargo area. Bethany and Eventide had expertise in providing senior care in the area, but neither provider had previously offered in-home care, so the two joined with Knute-Nelson on the new venture, which contributed its years of experience in providing home health care to residents in a 32-county area of Minnesota.

Since launching Ethos last August, the organization has served about 100 patients. Major attributes the small patient load to the fact that the organization wasn’t immediately Medicare approved (it is currently going through the accreditation process) so couldn’t bill for many of its services. She says Ethos also wanted to make sure its staff was thoroughly trained and able to provide the best care possible before ramping up its patient load. “As we take on more employees we’ll take on more patients,” she says.

Ethos currently employs four staff members - two registered nurses, a physical therapist and an occupational therapist. The organization has been advertising for a licensed practical nurse and another registered nurse “for quite awhile,” but finding staff is an ongoing problem. “The hospitals are feeling it, the care centers are all feeling it, and home care is feeling it as well,” Major says.

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|HEALTH CARE| Scott Duke, president and CEO of the South Dakota Association of the Healthcare Organizations. “In addition, home- and community-based services are a critical support component to allow people to remain in the community as long as possible.”

An assessment recently commissioned by the state predicts that by 2035, people aged 65 and older will comprise more than 20 percent of the population in all but 10 South Dakota counties. Meanwhile, the number of people aged 18 to 44, prime candidates for the health care workforce, is expected to decline and concentrate in the urban centers of Sioux Falls and Rapid City, further complicating future availability of health care in rural areas.

SDAHO is also looking toward As she recovers from knee replacement surgery, Anne Koski receives physical therapy sessions from Sheila Mihaylov as part of Ethos Home Care’s services. The organization launched technology to support health care in the Fargo area last August and has served about a 100 patients in the area so far. PHOTO: delivery. Tele-health and monitoring PRAIRIE BUSINESS MAGAZINE systems can reduce the frequency of visits required by health care providers She’s a strong advocate for incorporating technology into while allowing them to maintain a home care not just for the staffing benefits, but for the additionconnection with the patient, the group says. al well-being that remote monitoring can provide for families.

While the potential benefits are certainly there, the number Technology can be utilized in a variety of ways for senior care. of providers so far actually utilizing technology to aid in long-term Medication dispensers can send an alarm to caregivers if medicine health care is still relatively few. Care givers say the cost of technolis not dispensed at the correct time, motion sensors can automatogy is the biggest hindrance to its roll-out. ically trigger lights to turn when a person enters a room or steps SDAHO notes that South Dakota providers who use these on the floor as they get out of bed. Major offers another example types of technology often find they are too expensive to mainshe’s seen firsthand, where a child was concerned about his parent tain. Andrea Jung, president of Elk River, Minn.-based Guardian leaving home and becoming disoriented, so a sensor was enabled Angels Elimm Healthcare and Hospice agrees. She says her orgato alert the child whenever the parent’s garage door opens or closes. nization used tele-health in the past, but struggled because there Knute Nelson utilizes a technology called grandCARE was no funding available to help cover the cost. The organization Systems, which uses a touch screen in the patient’s home to control was eventually forced to stop using tele-health because it was any number of services, all tailored to the individual’s needs. Major cost prohibitive, although it is now exploring the use of remote says she will “most definitely” incorporate technology at Ethos as it monitoring technology developed by Mendota Heights, Minn.becomes available, adding that while it can be expensive, it is worth based Healthsense. the cost. “Sometimes it’s more valuable to pay for peace of mind “I’m really excited about the potential there is for home and know that they’re ok,” she says. care,” Jung says. “I think technology is going to be a big impact Like elsewhere in the region, South Dakota is struggling to and change the way we deliver care and how many people we’re find staffers to meet growing demands from its aging population. reaching. There are so many things going on in this industry that However, while Minnesota has a large number of home care I’m really excited about.” PB Kris Bevill options, South Dakota is lacking in providers. A recent check of Editor, Prairie Business the South Dakota Department of Health website showed just 24 701-306-8561, kbevill@prairiebizmag.com registered agencies offering services in about 40 locations, in fact.

“Expansion of all types of home health services are important and necessary for South Dakotans, especially in rural areas,” says

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Prairie Business Magazine July 2015

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|MARIJUANA|

A New Option

Medicinal marijuana facility set to open in Moorhead, Minn

BY KAYLA PRASEK

A

Guy Lindblom tends marijuana plants at the growing facilities of Minnesota Medical Solutions.

PHOTO: ANDY CLAYTON-KING

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Prairie Business Magazine July 2015

s a board-certified physician in emergency medicine, Kyle Kingsley saw a wide variety of trauma come through the doors of his hospital. With that came people in immense levels of pain that the usual pain medications couldn’t subdue. Because of that, Kingsley started learning about medical cannabis and eventually co-authored the “Medical Cannabis Primer for Healthcare Providers.”

“I had patients experience these tremendous levels of pain, which led me to look into medical cannabis,” says Kingsley, CEO of Minnesota Medical Solutions. “I was nervous about the situations in states that had

previously approved it, so when Minnesota approved medical cannabis, I knew we had to do it differently.”

Kingsley’s company, also known as MinnMed, received its license from the state of Minnesota Dec. 1 and quickly put its plan to work. The company built its 27,000-squarefoot production facility in Otsego, with the first dispensary in Minneapolis set to open July 1. Three other dispensaries, in Moorhead, Rochester and Eden Prairie, will open during the following two months. An additional 218,000-square-foot year-round greenhouse, manufacturing facility and laboratory will open in March 2016.

|MARIJUANA| State Approval When the Minnesota Legislature approved the medical cannabis program during the 2014 session, it opened the door for this blossoming industry. According to the Minnesota Department of Health, the program is to “allow seriously ill Minnesotans to use medical cannabis to treat certain conditions.” Patients who wish to use medical cannabis must have one of the qualifying conditions, as certified by their doctor, and must enroll in a patient registry maintained by the state. Only patients on the registry will be able to get medical cannabis directly from a dispensary.

Qualifying conditions are cancers associated with severe or chronic pain, nausea or severe vomiting or cachexia or severe wasting; HIV/AIDS; Tourette Syndrome; Amyotrophic Lateral Sclerosis; seizures, including those characteristic of epilepsy; severe and persistent muscle spasms, including those characteristic of multiple sclerosis; Crohn’s Disease; and terminal illness, with a life expectancy of less than one year, if the illness or treatment produces severe or chronic pain, nausea or severe vomiting, cachexia or severe wasting.

The legislation also states there will be two registered manufacturers, who each will set up four dispensaries around the state. In addition to MinnMed’s four locations, LeafLine Labs will have dispensaries in St. Paul, Eagan, St. Cloud and Hibbing.

Finally, the legislation states that medical cannabis will only be available as a liquid, pill or vapor and cannot use the dried leaves or plant form.

“People will be surprised how boring medical cannabis is,” Kingsley says. “It’s good for the state because there are very sick people here, and this is another treatment option for them. There really is no downside to this program.”

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Strict Limitations For Kingsley, the limits of the state’s program were important, because “it’s just another treatment option. Our customers will never see the plant. We will only stock oils and pills, and it will look like medicine, which was important to me,” he says.

Security is also of the utmost importance for MinnMed, so each dispensary will have a very robust security system in place, “while still looking like a comfortable clinic/pharmacy,” Kingsley says. “We are just another health care organization, employing physicians and scientists.” To ensure each location is secure, only patients, parents and caregivers will be allowed inside, and those customers will pick up their

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|MARIJUANA|

Products made by Minnesota Medical Solutions come in different form and are labeled by color. PHOTO: ANDY CLAYTON-KING

prescriptions from a pharmacist. Kingsley says patients will also go through a counseling process.

While the state will be focusing on tracking the effectiveness and safety of medical cannabis, according to the Department of Health, Kingsley says MinnMed will be focusing on setting a high standard of quality and control. “By extracting the medicinal components from the plant, we’re able to very precisely control the exact dose in each pill or oil,” Kingsley says. “That’s not the norm in the industry, and we’re trying to raise that standard. You’ll see us do a lot of quality testing to ensure we are only turning out the best medicines.”

Impact in Moorhead MinnMed’s decision to locate a dispensary in Moorhead came from Kingsley’s goal of ensuring all patients have access to medical cannabis. “Patient access was the most important thing for me, and we believe Moorhead is a reasonable location for those living in northwest Minnesota. The city has been very reasonable and approachable as well,” he says. In June, MinnMed anticipated opening the Moorhead location in mid-August.

“We received a warm reception from the city, as they understand what we’re doing,” Kingsley says. “I believe the people of Moorhead will be proud that their city is part of this once they realize what we’re doing.

If there’s been any resistance, it’s because of people misunderstanding what we’re doing.”

Matt Maslowski, economic development director for the city of Moorhead, says the city only has positive things to say about MinnMed’s

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decision to locate in Moorhead. “We’ve treated this as any other professional business, because that’s what it is. It’s a legitimate business that is essentially a pharmacy,” Maslowski says.

As economic development director, Maslowski assisted MinnMed in choosing a location within the city. “Earlier this year, when it became evident we were being chosen as a location, we started preparing to welcome them. In the last several months, several different city offices have been involved in assisting them to ensure they’re following our city ordinances,” Maslowski says. “I helped them find a few possible locations for site options and helped determine which areas were the best. The spot they chose was chosen mainly because of its location in our central business corridor downtown. Their business plans are very similar to the surrounding businesses, so we all believe it will work well there. Our thought basically was, ‘where does a pharmacy fit?’ and the central business corridor downtown makes sense.”

The Moorhead MinnMed dispensary is considered a destination spot by Maslowski, meaning it brings in a niche audience. However, because it is a niche market, “it brings in new traffic and new buying power,” Maslowski says. “People who might not come to our downtown will now be there, and we hope they’ll stay down there and visit our shops and restaurants. Economically, it’s a win. We don’t see a negative.”

The Moorhead dispensary will be located in the 7th & Main Plaza, 104 7th St. S, in between Pizza Hut and Liberty Tax Service. Maslowski says he hasn’t heard any concerns from existing area businesses but is looking forward to discussions MinnMed will be hosting with its neighboring businesses. “We don’t want any misperceptions about what

|MARIJUANA| they’re doing. It’s another professional business that is very tightly monitored,” Maslowski says.

Part of Kingsley’s job is also to reach out to health care providers to get them on board with the state’s program. “We’re working with all health care options to ensure every patient who is eligible has the opportunity for this treatment,” Kingsley says. “So far, Mayo Clinic has been very receptive to us. Others have been more reserved, but they see the possibility.”

Physicians at Sanford Health in Fargo will each individually be allowed to decide whether they will certify patients for the medical cannabis program, says Dr. James Volk, an internal medicine doctor at Sanford.

Volk says because his practice is on the hospital side only, he won’t be utilizing medical cannabis within his practice.

“Our physicians have been talking, though I haven’t heard anyone specifically say they will be prescribing medical cannabis as a treatment,” Volk says. “I have heard some concerns as well.”

Volk says his colleagues’ concerns about Minnesota’s medical cannabis program include that, from a federal standpoint, it is an illegal substance and there isn’t a large amount of literature about using medical cannabis for a long period of time. However, Volk says Sanford is expecting to have patients seeking medical cannabis so administration is creating a handout for providers and patients. “We want to have some information readily available, and we want any initial questions to be answered and get them connected to the state’s registry,” Volk says.

Lake Region Healthcare in Fergus Falls, Minn., is also in the process of establishing parameters for both inpatient and outpatient medical cannabis policies, says Katie Johnson, vice president of marketing and communications.

On the outpatient side, Lake Region has two physicians who will be applying for certification to qualify patients to enroll in the system.

On the inpatient side, Johnson says Lake Region is working through the issues related to patients who could potentially come to the hospital with medical cannabis they have already obtained and are using and how the hospital’s health care professionals will manage the medical cannabis as part of caring for these patients.

While it may seem surprising Volk says he doesn’t know of any Sanford physicians who will be applying to qualify patients, the Minnesota Medical Association released survey results in early June showing only 9 percent of doctors licensed in the state of Minnesota plan to participate in the program. Another 17 percent of physicians hadn’t decided, and 7 percent said they don’t have any patients who would have a qualifying condition for the drug.

MinnMed can start selling its medications July 1, as set by the legislature. “We’re excited about this opportunity, and are committed to having everything in place at our Minneapolis dispensary by that date,” Kingsley says. “From there, we’ll continue the rollout in our other three locations.” PB Kayla Prasek Staff Writer Prairie Business magazine 701-780-1187, kprasek@prairiebizmag.com

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|DIGITAL EXCLUSIVE: INFORMATION TECHNOLOGY|

When hackers hit

What do to if your website is breached

BY KRIS BEVILL

J

Hack attacks continue to raise concerns among industries, including small- and mid-sized businesses. PHOTO: REUTERS/Dado Ruvic

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ust three little words are capable of striking fear and panic into any information technology professional’s heart: You’ve been hacked. Website security is of utmost importance in our increasingly connected world, and IT professionals dedicate countless hours to staying a step ahead of would-be attackers by diligently carrying out prevention efforts and constantly monitoring sites for unusual activity. But despite these efforts, security breaches continue to become more commonplace as hack attacks continue to evolve, leading some IT professionals to caution that security breaches are no longer a matter of “if”, but “when.”

That was exactly the situation Perham, Minn.-based telecommunications company Arvig Communications found itself in on the morning of May 19. At about 7 a.m., the company’s senior manager of IT, Shaun Carlson, received a call from one of the network center operation center monitors alerting him to the fact that a breach had been detected on

Arvig’s website. “I was like, ‘Oh boy, we’ve been hacked,’” he recalls.

Carlson immediately contacted the company’s third-party website vendor to knock down the imposter page and began collaborating internally with Arvig’s IT staff to restore the company’s backup. Meanwhile, Lisa Greene, Arvig’s marketing and media manager, was brought into the loop and set about contacting company management, employees, customers and authorities.

Lessons Learned It turned out that Arvig was lucky in a couple of ways: Most importantly, the breach was not a serious one. The group responsible, Cyb3r CommandOS, hadn’t accessed any customer data. The hack consisted of nothing more than the group putting a screen with a message in front of Arvig’s actual website, having gained access to the site through a vulnerability in the site’s content management system (CMS).

|DIGITAL EXCLUSIVE: INFORMATION TECHNOLOGY| Also, because of the breach Arvig gained valuable insight into the importance of having a reaction plan for that type of situation, something which Greene says had been loosely developed prior to the hack attack but would now be a priority to complete. However basic it may have been, having a plan in place helped streamline the response, says Carlson. Arvig’s website was back up less than three hours after he was initially notified of the problem, and an extensive cleanup and restoration process was completed later that same day.

Reaction Tips The steps taken by Arvig to recover from its cyber attack are similar to those recommended by IT professionals throughout the region, who agree that security breaches are becoming more common. David Loegering, technical services manager for Corporate Technologies’ Fargo office, says that while small- to mid-sized businesses are not often the target of seriously damaging cyber attacks, hacks do still happen, usually by people he calls “hacker wannabes” who do it for bragging rights. “If you’re a small business and you have a few hundred customers, you’re not going to attract the attention of a large hacker. There’s just no return in doing it,” he says.

Once they had recovered from Arvig’s breach, Carlson and his IT team researched its attackers and found that notoriety was indeed the motivator for that group. “The ultimate answer was: Because they could,” he says, noting that the same group also successfully hacked into a city website in Pennsylvania the day after the Arvig breach.

If you discover your website has been hacked, communication is priority No. 1, according to Loegering and others. This includes alerting customers as soon as possible via email, social media or another method that is deemed safe and appropriate for the situation. Arvig’s reaction plan places most of that responsibility on the marketing manager. “I’m at the center, making sure that everyone knows what’s going on,” Greene says. “I make sure the top management knows what’s going on, make sure the people who can affect change know what’s going on, and then figure out externally what we need to communicate.”

Because of Arvig’s role as a communications company with access to important infrastructure, the company contacted Homeland Security to report the breach as part of its com-

munication strategy, but Greene says that is not always a necessary step. “In other cases, it may just be a customer message, and how to get that out in the quickest way possible.”

Carlson adds that honesty is the best policy when informing customers and the public that a breach has occurred. “Just be up front about it,” he says. “Tell everybody what happened, what you learned from it, and share knowledge.”

While communications plans are being carried out, the proper IT professionals should be working on knocking down the attack and replacing the affected site with a recent backup.

A growing number of companies are contracting with third-party vendors to create and host their websites for ease of management, and the contracted party should be able to combat the problem quickly and efficiently. Loegering says that if a hosting company is doing an effective job, it should have frequent backups that can be called upon when needed and firewalls that can identify how the hack occurred.

Carlson says Arvig had hired a third-party vendor to host its website just weeks before the attack. He declined to name the company, but said Arvig chose that vendor because it specializes in hosting and maintaining CMS. Ironically, the attackers accessed Arvig’s website through a vulnerability in Wordpress, which is the CMS used by the company. Carlson notes that Wordpress is one of the most widely used CMS’ in the world, so vulnerabilities and their patches are regularly identified, but in this case it was a vulnerability that was so new the patch had not yet been applied. Still, he stresses that Arvig’s experience demonstrates the need for vigilence in being aware of CMS vulnerabilities and patching them in a timely fashion.

Aaron Mentele, a partner at Sioux Falls, S.D.-based Electric Pulp, says that while every website and hack attack is different, a compromised CMS is often to blame for a successful attack. And while he admits it’s impossible to prevent all attacks, he suggests that careful selection of website developers and hosting companies that stay up to date on prevention techniques are the best line of defense. “Obviously prevention is the better route - everything from firewalls and monitoring to keeping all of the core software up to date,” he says. “Certainly we try to catch it before it happens.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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|DIGITAL EXCLUSIVE: MEGASITE|

Game-changer?

South Dakota to build mega-business park in Sioux Falls

BY ROB SWENSON

T

An 820-acre business park in Sioux Falls, S.D., is expected to attract major players to the area. RENDERING: CONFULENCE/SIOUX FALLS DEVELOPMENT FOUNDATION

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Prairie Business Magazine July 2015

he creation of a business park that development leaders describe as a “world-class megasite” was inspired by an unsuccessful attempt to lure a major industrial prospect to Sioux Falls, S.D. Efforts to attract the plant to Sioux Falls derailed three years when, for internal reasons, the company changed its plans.

“The project was put on indefinite hold,” recalls Slater Barr, president of the Sioux Falls Development Foundation.

At the time, foundation representatives had acquired options on several hundred acres of land to help entice the unidentified company to South Dakota. After the project

fell through, they decided to keep assembling theland.

“There are some very attractive features to the park. We realized those features would be attractive to other prospects as well,” Barr said.

On June 2, approximately 200 business people and others gathered at a downtown hotel to hear local and state officials announce that the 820-acre park is becoming a reality. An initial tenant has even been signed.

Foundation Park, as the new industrial park has been named, should be a game-changer for future economic development in the Sioux Falls area, officials said.

|DIGITAL EXCLUSIVE: MEGASITE|

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Supporters say Foundation Park’s proximity to rail lines, Interstates 29 and 90 and the Sioux Falls Regional Airport should help attract tenants to the business park. RENDERING: CONFLUENCE/SIOUX FALLS DEVELOPMENT FOUNDATION

“World-class companies require global connectivity,” Barr said. “With high-capacity utility and communication infrastructure in place and the transportation options this site offers, we can appeal to some of the largest projects in the country.”

Foundation Park is northwest of the junction of Interstate Highways 29 and 90. A BNSF rail line cuts through the property, providing coveted railroad access to prospective businesses. The site, which has frontage along I-29, also is within a few miles of the Sioux Falls Regional Airport.

Farmland is being acquired from a half-dozen landowners for the park. The property sits northwest of the city’s border but will be annexed. Plans call for the southern half of the new park to be reserved for smaller businesses. The north half will be reserved for a single, large tenant.

“This puts us on the radar of businesses in a whole new way,” Gov. Dennis Daugaard said. There is at least one prospec-

tive tenant for the large tract: a manufacturing company from the Chicago area, he said.

Daugaard and his top economic development assistant, Pat Costello, who serves as the commissioner of the Governor’s Office of Economic Development, were among the dignitaries who participated in the celebratory announcement.

In addition to the SFDF and GOED, entities that are helping create Foundation Park are the city of Sioux Falls and Forward Sioux Falls, a community-development program jointly sponsored by the Sioux Falls Area Chamber of Commerce and the SFDF. “The magnitude of the project, in acquiring this much land and developing it for our state’s largest potential new businesses, required the cooperation of all of our active economic development partners,” Barr said.

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|DIGITAL EXCLUSIVE: MEGASITE|

Slater Barr

GOED is providing SFDF with an $8.5 million loan from a state development fund to help pay for the land. The state is also awarding the SFDF a $3 million grant for the project. Total land costs are expected to be nearly $20 million, Barr said.

The first tenant in the new park will be transportation company, Logistics Buddy, and a sister business, The Fruit Club. The two companies have announced plans to buy 34 acres and build a 600,000-square-foot, temperature-controlled warehouse.

Logistics Buddy is an existing Sioux Falls company that occupies leased space in the city but wants to expand.The privately owned company provides services nationally and internationally.

The Fruit Club, which shares business space with Logistics Buddy, delivers fruit to customers in 10 states.

Scott Kear, incoming CEO of Logistics Buddy, said the company expects to invest somewhere between $50 million and $70 million on its new facility. “Our company has decided to make this investment in South Dakota because it is a very business-friendly state,” he said.

Logistics Buddy currently employs 22 people. It has been operating in Sioux Falls for about three years. The Fruit Club, which employs 25 people, is a newer venture.

It sold its first box of fruit in 2013, said Lynn Albers, vice president of The Fruit Club, and is on track to sell 3.5 million pounds in 2015.

Kear said the new park will be a great place to expand Logistics Buddy’s operations. “That location at the intersection of two major interstates plus a railroad spur, there’s nothing that can come close to it,” Kear said.

He hopes the presence of Logistics Buddy helps attract other businesses to the park. Foundation Park will be the single largest business park in South Dakota and one of the largest in the region.

The features of Foundation Park, its location in the population center of Sioux Falls and South Dakota’s pro-business environment will give South Dakota the opportunity to court large, national and international projects, Daugaard and others said. Among other attractions, South Dakota promotes itself as a state that has productive workers and lacks personal and corporate income taxes.

Local and state officials will make special efforts to attract manufacturing companies and business that complement manufacturers to the new park.

Manufacturing employment in South Dakota dipped during the national recession of 2007-’09, but it has rebounded. As of April, statewide employment in manufacturing had increased to a near-record of 43,900, according to state labor department data.

Manufacturing employs roughly the same number of people in South Dakota as the leisure and hospitality industry, which is prominent in South Dakota. Retail, health care and education are among the few sectors that employ more.

Sioux Falls has a population of about 170,000 people. The four-county metropolitan area has reached a total of about 250,000 residents, a population category that is thrusting the city into a higher level of business awareness, officials said.

Since the early 1970s, the SFDF has developed nine business parks in Sioux Falls, but they are mostly full. Existing parks total 1,351 acres and host 140 companies with approximately 13,000 employees.

Foundation Park will bring the total acreage in SFDF business parks to more than 2,100 acres. Based on historical patterns, Barr estimates the new park eventually could employ about 8,000 people.

Private companies and other organizations in Sioux Falls have developed several other business parks in the city.

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|DIGITAL EXCLUSIVE: MEGASITE| However, development officials refer to Foundation Park as the city’s first “megasite.”

Design work on the new park likely will continue through 2015, Barr said. Tracts ranging in size from 5 acres to 390 acres will be available.Construction of infrastructure and buildings could begin in 2016. Full development of the park is expected to take years.

“It will prove to be an economic development and job-creating juggernaut for generations to come,” Mayor Mike Huether said.

Sioux Falls developer Craig Lloyd is among the business people thrilled by the creation of Foundation Park. He is the CEO of the Lloyd Cos., one of the most active commercial and residential developers in Sioux Falls. Lloyd expects the new park to attract good, clean businesses and stimulate continued growth of the city’s economic base.

“It’s about exciting as it gets. The northwest corner is going to push things forward,” he said.

Most of the foundation’s existing business parks are in northeastern Sioux Falls. But two of its newer parks are in northwestern Sioux Falls. For the past several years, the heaviest concentration of the city’s business and residential growth has been along the southern, eastern and western edges of the communities. So the city is growing in all directions.

A few generations ago, Sioux Falls was a meatpacking town. Its economic well-being hinged largely on the health of the John Morrell & Co. food-processing plant. Morrell and related agricultural services remain a significant economic force in Sioux Falls. But in recent decades the city has diversified its economic base with substantial growth in sectors such as retail, financial services and health care.

“Foundation Park gives us the opportunity to, once again, step up and change the future,” said bank executive Dave Rozenboom, co-chair of Forward Sioux Falls. PB Rob Swenson Contributing Writer RobSwensonMediaServices@gmail.com

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|CONSTRUCTION CORNER|

Ready to fly

Minot International Airport’s expanded terminal takes shape

BY MARNIE LAHTINEN

Sections of the Minot International Airport are shown under construction, left, with renderings of the completed sections at right. PHOTO: BOB LINDEE/CITY OF MINOT

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Prairie Business Magazine July 2015

D

evelopment in North Dakota’s Bakken shale fields has placed strains on public infrastructure across the western part of the state, and the Minot International Airport is no exception. The existing terminal building was built in 1991 to process 100,000 enplaned passengers per year.

In 2014 a whopping 453,750 passengers passed through the Minot airport. This dramatic traffic increase is the reason that a new terminal building is under construction with an estimated project completion of January 2016.

“In 2011, because of rapid enplanement growth, it was determined a new terminal building would be needed,” says airport director Andrew Solsvig. “City leadership identified the urgency of this project and immediately approved design work for the new terminal building.” Several fast-tracked studies were com-

missioned to define the project’s requirements, an approved growth forecast and a financial plan. Federal and state grants enabled groundwork to begin in fall 2013 and structural construction began in spring 2014.

The terminal project plan was estimated to cost around $41 million and, to date, project change orders have been kept under three percent. Funding came from North Dakota’s State Oil and Gas Impact Grant Fund, the Federal Aviation Administration and through the City of Minot’s airport revenue bonds.

Project planners recognized that the construction of the new terminal was dependent upon the completion of other projects, such as the relocation of a snow removal equipment building, reconstruction of taxiways and the addition of more parking lots. These related projects added an approximate $46.3 million to

|CONSTRUCTION CORNER|

π SHIPPING SUPPLY SPECIALISTS

overall terminal construction costs. “In total, over $91 million in capital infrastructure projects will have been expended in a short four-year period,” Solsvig says. “This is a tremendous challenge and accomplishment to everyone involved.”

Denver-based architectural firm CooverClark designed the new 126,000-square-foot terminal building. The structure will feature six gates with enough room to support additional airlines as needed. And unlike the current building, the new terminal will have the ability to process multiple flights simultaneously while providing support for a variety of aircraft types spanning from regional jets to Boeing 757 airliners, according to Solsvig.

“We have created a design that is unique to the region and is expressive to both Minot [and] the state of North Dakota,” says Edward Balkin, director of design at CooverClark. The firm incorporated trestle features throughout the terminal design to resemble the Gassman Coulee trestle bridge located just outside of Minot. “This trestle brought commerce, trade, and dollars to the region in 1887, and was in large part a reason for its overnight growth in the late 1800’s,” Balkin says. “This trestle [bridge] still stands today and still accommodates rail traffic across the state … these truss-like forms are represented throughout the building, bringing a strong connection to the history here.”

CooverClark also integrated energy efficient elements into the design, including heated slabs in the lobby and baggage areas and a variety of glass colors and window applications to protect interiors from solar glare and harsh North Dakota temperatures.

Bismarck-based KLJ engineered the project and Eagan, Minn.-based Graham Construction is serving as the general contractor. Rick Skumavc, project manager for Graham Construction, says the projected 27-month construction undertaking is on schedule.

“Coordination and weather are the biggest challenges that we face daily,” Skumavc says.

“Over 350 safety orientations have been conducted to date … and [we’re dealing with] one million pounds of structural steel, 12 different types of glass and 17 different roofs (standing seam and ethylene propylene diene terpolymer).”

The logistical requirements to manage a handful of projects within one quarter-mile of each other have been both numerous and challenging. A project of this scope creates coordination and communication hurdles, Solsvig says. He antici-

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41

|CONSTRUCTION CORNER| pates the terminal will be mostly complete by the end of December 2015 or early January 2016 barring any “major hiccups.”

Solsvig says the development of a terminal transition plan will be absolutely key to switching from one operation to the other when the time comes to relocate to the new terminal. “Communication and expediency is of utmost importance,” he says. “Everyone is putting in the time and dedication needed to keep things moving forward as quickly as able.” PB Marnie Lahtinen Contributing writer MarnieLahtinen@gmail.com

“The quality service DCN provides has fostered a unique partnership between DCN and KLJ.” Kenneth Redinger, Information Technology Director, KLJ Dakota Carrier Network Customer

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DCN Fiber Optic Backbone

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Ackerman Surveying & Associates Inc. Material Testing Bechtold Paving Inc. Fargo Glass & Paint Company Johnson Controls Inc. Fargo

KLJ has operations in 23 different locations employing over 750 professionals. With KLJ’s significant growth, reliable network connectivity is a priority. DCN’s services give KLJ the capability to directly collaborate between offices via their Ethernet connections utilizing DCN’s fiber network.

LS Drywall, Inc. Main Electric Construction Inc. Mowbray & Son Inc. Overhead Door Company of Minot

“DCN has proven to be a trusted advisor by providing quality service and expertise for our corporate technology needs for more than 10 years,” said Kenneth Redinger.

Pederson Painting, Inc. Professional Concrete Services Inc. Stripe Right Inc. Midwest SVR Target Roofing Tollefson’s Contract Division Total Fire Protection Inc. Trim Tec

42

Prairie Business Magazine July 2015

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43

Startup brings UAVs to wind industry Company creates application to monitor turbines remotely

BY KAYLA PRASEK

W

Grand Forks, N.D.-based EdgeData plans to utilize unmanned aerial vehicles to monitor commercial turbines.

Additional applications could include utility lines and agricultural applications. PHOTO: EDGEDATA

44

Prairie Business Magazine July 2015

ind energy is still a fairly young industry, but father-son duo Jeff and Greg Thorsteinson are poised to help the industry grow with their startup EdgeData, a Grand Forks, N.D.-based big data company which will help those in the wind energy industry analyze turbines safely. The Thorsteinsons say their company is the next step for the wind energy industry.

“There was a rush to get wind turbines in the ground, but the industry hasn’t matured to take care of those turbines,” co-founder Jeff Thorsteinson says. “About 2 to 3 percent of the cost of a wind farm should go to maintenance, but owners are losing 11 to 15 percent because of a loss of efficiency. By maintaining your wind turbines, you’re going to keep your costs lower.”

And that’s where EdgeData’s product BladeEdge comes in. BladeEdge is an automatic condition assessment of wind turbine blades that is built into the workflow of the blade manufacturers.

Thorsteinson says blades need periodic checks to make sure they’re in optimal condition, and the only

way to do those checks right now is by climbing the turbines, which is highly dangerous.

BladeEdge utilizes unmanned aerial vehicles (UAVs) with a number of sensors on board to gather data as they fly around each turbine. Thorsteinson says the UAVs can get within 10 feet of a turbine, which is necessary for a thorough inspection. The UAVs take high-resolution photos and videos, which are then processed so manufacturers and wind farm owners can see any damage to the turbines and ultimately get the damage fixed.

The decision to use UAVs to gather the data was an ideal choice because “we want to get up close, but it’s not comfortable for a person to be right up there,” Thorsteinson says. “The area around a wind farm is already restricted airspace, and we believe UAVs should be used for dark, dirty and dangerous jobs. Using UAVs to inspect wind turbines replaces that dangerous job. The cost of human life is inestimable.”

Thorsteinson says EdgeData is one of the first companies doing this type of work, and is

|ENERGY| the only one doing an automatic assessment of turbines and their condition. Because the wind industry is still growing, “we have to keep the fleets viable so owners can see returns on their investments,” Thorsteinson says.

Thorsteinson believes there are three prospective users of BladeEdge: Owners of wind farms who need to decide whether to repair damaged blades, companies that manufacture turbine blades and want to evaluate their condition in the field and companies that build wind farms and want to see how their farms are performing overall. “Once we’ve fully developed our product and broken into the market, it could be that other people may want the information that’s provided,” Thorsteinson says.

Thorsteinson, a 1982 graduate of the University of North Dakota, has spent his career working at Involta, a data center, while his son, Greg, has a background in aviation and crop insurance. They both became interested in UAVs and realized, with the help of Kevin Rusk, director of UND’s Tech Accelerator, that wind energy was an untapped industry. “Kevin had experience with LM Wind Power, which we ultimately partnered with in October,” Thorsteinson says.

Rusk also encouraged the Thorsteinsons to apply, through the UND Tech Accelerator, for a $450,000 matching Research ND grant.

The grant, which they received this spring, will allow them to have lab space in the Tech Accelerator and be able to collaborate with LM

Wind Power and SmartC2. “It will also provide us with project management and business development,” Thorsteinson says.

In mid-May, EdgeData expected to begin flying its UAVs in June. “It’s not hard to fly the UAVs and take photos; it’s getting it to go into the workflow that we’re working on right now,” Thorsteinson says. The company is capable of delivering its prototype, which is essentially in the beta testing phase, to interested parties and offers customers the option of contracting with EdgeData to provide the service or purchasing the application to run on their own.

Thorsteinson says the decision to purchase BladeEdge as either a service or an application would depend on a company’s security and privacy needs. Within BladeEdge, a company could choose to only have photos or videos or both, along with other types of services.

“We want to drive the cost down so it makes sense to an owner to do an inspection,” he says. “We don’t want the cost to deter someone from having that inspection done. We think it’s all about the data, and the opportunity provided by Research ND means there are North Dakotans out there who can benefit from this.” PB Kayla Prasek Staff Writer Prairie Business magazine 701-780-1187, kprasek@prairiebizmag.com

www.prairiebizmag.com

45

New-well oil oil production perper rig rig New-well production

barrels/day barrels/day |FEDERAL DRILLING DATA| July-2014 July-2014

1,500 1,500

1,000 1,000 barrels/day 1,5001,500 month over month 750750 1,2501,250

631

+23

July-2015 July-2015

June

barrels/day

barrels/day Bakken Region barrels/day 500 500 over month month New-well oil production per rig

June

July-2015 July-2015

MonthlyNew-well gasgas production per per rig rig New-well production 8,000 8,000 750 July 631 thousand cubiccubic feet/day thousand feet/day additions 7,000 7,000 Monthly 500 July-2014 June from one 6,0006,000 July-2014 July 620 additions 9,0009,000 thousand cubic feet/day average rig5,0005,000 250

Gas +11 July-2015 July-2015 Gas

8,000 from one8,000 4,000 4,000 7,0007,0000 average rig3,0003,000

Bakken Eagle Ford Haynesville Marcellus Niobrara Permian Utica Bakken Eagle Ford Haynesville Marcellus Niobrara PermianUtica Utica Bakken Eagle Ford Haynesville Marcellus Niobrara Permian Eagle Ford Haynesville Marcellus Niobrara Permian Utica rigBakken count 2,400

600

0 Legacy oil production change Legacy oil production change 300(25) (25) 2008 2007 2009 2010 2011

2012

thousand barrels/day thousand barrels/day

2013

2014

2015

0 1,800

200

1,200

0 100 Legacy oil production change

600

EagleEagle Ford Ford Haynesville Marcellus Niobrara Bakken Haynesville Marcellus NiobraraPermian Permian UticaUtica (50)(50)Bakken

Bakken Region 0

(75)(75) thousand 0 (25) barrels/day (25) 0 2007 2008 2009 (10) (100) (100) (50) (50) (20) (30) (125) (125) Bakken (75) (75)Region (40)

2010

2011

2012

July-2014 July-2014 Legacy oil production change (50) (150) (150)

2013

2014

2015

0

July-2015 July-2015

thousand (100) (100) barrels/day (60) 0(70) Indicated change in oil production (Jul(Jul vs.vs.

Jun) Indicated monthly change in oil production Jun) (125) (125) monthly (10) (80) thousand barrels/day thousand barrels/day July-2014 July-2015 July-2014 July-2015 (90) (20) (150)(150) 2007 2008 2009 2010 2011 2012 2013 2014 2015 (30) July-2014 July-2015 July-2014 July-2015 (40) Bakken Region Indicated monthly change in oil production (Jul(Jul vs. Jun) Indicated monthly change in oil production vs. Jun) (50) 60 60 Indicated change in oil production (Jul vs. Jun) thousand barrels/day thousand barrels/day (60) thousand 40 40 barrels/day -29 +51 -80 (70) July-2014 July-2015 100 July-2014 July-2015 20 20 (80) 605060 (90) 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 40 040 -20 -20

20-5020 -40 -40Region Bakken Jun Legacy Net Indicated in Production oilfrom production (Jul vs. Jun) 0 0 change 1,266 production change

Jul 1,237 -60 -60 Mbbl/d new wells change Mbbl/d UticaUtica Bakken FordFord Haynesville Marcellus thousand barrels/day BakkenEagle Eagle Haynesville MarcellusNiobrara Niobrara Permian Permian

-20 -20

100 -40 Bakken Region

+51

-80

-29

Oil Oil production -40production

Oil -29

thousand barrels/day barrels/day Oilthousand production thousand barrels/day -60 50 -60 barrels/day thousand month over month Bakken EagleEagle Ford Ford Haynesville Marcellus Permian Bakken Haynesville MarcellusNiobrara Niobrara Permian UticaUtica July-2014 July-2015 July-2014 July-2015 1,400

0

2,800 2,800 Oil1,200 production Oil production thousand barrels/day thousand 1,000 -502,400 barrels/day 2,400 800 Jun 2,000 2,000 1,266 600 1,600 1,600 Mbbl/d 2,800 2,800 400 1,200 1,200 2,400 2,400 200

Bakken Region 800 0800 2,000 2,000 2007 2008 Oil 400 production 400

Production Legacy Net July-2014 July-2015 July-2014production July-2015 from change new wells change

2009

2010

2011

2012

Jul 1,237 Mbbl/d

Oil -29 2014 2015

2013

thousand barrels/day thousand barrels/day month over month U. S. Energy Information Administration | Drilling Productivity Report 0 0 1,2001,200 1,400 Bakken FordFord Haynesville Marcellus BakkenEagle Eagle Haynesville MarcellusNiobrara Niobrara Permian Permian UticaUtica 1,6001,600

800

1,200 800 400

1,000 400U. S. Information Administration | Drilling Productivity Report U.Energy S. Energy Information Administration | Drilling Productivity Report 0

800

46

0

Bakken EagleEagle Ford Ford Haynesville Marcellus Niobrara Bakken Haynesville Marcellus NiobraraPermian Permian UticaUtica

June

631 620

7,000 6,000 5,000

4,000 3,000

thousand cubic feet/day month over month

+11

2,000

thousand cubic feet/day thousand cubic feet/day over month Bakken Eagle Ford Haynesville Marcellusmonth Niobrara Permian Utica Rig count

6,0006,000 2,000 2,000 rigs 5,0005,000 1,000 250 1,000 Legacy oil production change 4,0004,000 new-well gas production per rig thousand barrels/day Rig count 0 0 200 3,0003,000 Bakken FordFord Haynesville Marcellus Utica Bakken Eagle Ford Haynesville MarcellusNiobrara Niobrara Permian Permian rigs Utica rigEagle count Bakken Eagle Haynesville Marcellus Niobrara Permian Utica 0 2,0002,000 150

250

new-well gaschange production Legacy gasgas production 1,000 Legacy production change per rig 1,000 (25) million cubic feet/day million cubic feet/day 0 0 rig count

100

200

Bakken Eagle FordFord Haynesville Marcellus Niobrara Permian Utica Bakken Eagle Ford Haynesville Marcellus NiobraraPermian Permian Utica Utica Bakken Eagle Ford Haynesville Marcellus Niobrara Bakken Eagle Haynesville Marcellus Niobrara Permian 50 Utica

0 (50) 0

150

(100) (100) Legacy gasgas production (75) Legacy change 2007 2008production 2009 change 2010 2011

2012

2013

2014

2015

0

100 million cubiccubic feet/day million feet/day (200) (200)Bakken Eagle Ford Haynesville Marcellus Niobrara Utica (100) Bakken Eagle Ford Haynesville Marcellus NiobraraPermian Permian Utica Region 50 0Bakken 0 Legacy (300) (300) gas production change (125) million (100) (100)cubic feet/day 0 July-2014 July-2015 (400) (400) 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 (150) (200)(200) (10) (500) (500) (20) (300)(300) (30) Indicated monthly change in oil production (Jul vs. Jun) (600) (600) Region Bakken (40) gas July-2014 July-2015 July-2014 July-2015 Legacy production change thousand barrels/day (400) (400) (50) (700) (700) million cubic feet/day (60) (500)(500) July-2014 July-2015 0 (70) Indicated monthly change in gas production (Jul(Jul vs.vs.

Jun) Indicated monthly change in gas production Jun) (600)(10) (80) (600) 60cubic feet/day million million cubic feet/day July-2014 July-2015 July-2014 July-2015 (90) (20) (700)(700)2007 2008 2009 2010 2011 2012 2013 2014 2015 (30)40 July-2014 July-2015 July-2014 July-2015 (40)20 350 Bakken 350 Region Indicated monthly change in gas production (Jul(Jul vs. Jun) Indicated monthly change in gas production vs. Jun) (50) Indicated change in natural gas production (Jul vs. Jun)

300 300 million cubic feet/day 0 cubic million feet/day (60) million cubic feet/day 250 250 +50 -78 July-2015-28 (70) -20 July-2014 July-2014 July-2015 200 200 100 (80)150 150 350 350 -40 50 100 100 (90) 300 300 50-60 50 2007 2008 2009 2010 2011 2012 2013 2014 2015 250 250 Permian Utica 00 0 Bakken Eagle Ford Haynesville Marcellus Niobrara 200 200 -50 -50 150-50 150 Region Bakken Oil production -100 -100 Jun Legacy Net Jul 100thousand 100 Indicated change inProduction natural gasproduction production (Jul vs. Jun)1,471 1,499 from change -150-150 barrels/day 50 50 MMcf/d newFord wells change MMcf/d UticaUtica Bakken Ford Haynesville Marcellus BakkenEagle Eagle Haynesville MarcellusNiobrara Niobrara Permian Permian million cubic feet/day 0 0 July-2014 July-2015 -50 100-50 Natural gasgas production Natural production Bakken Region -1002,800 -100cubic million feet/day million cubic feet/day Natural gas production million cubic feet/day -15050 -150 2,400 million cubic feet/day month over Permian month Bakken EagleEagle Ford Ford Haynesville Marcellus Niobrara Bakken Haynesville Marcellus Niobrara Permian UticaUtica July-2014 July-2015 July-2014 July-2015 2,000 7,000 0 18,000 18,000 Natural production 6,000 1,600gasgas Natural production million cubiccubic feet/day million feet/day 15,000 5,000 15,000 -50 1,200 Jun Production Legacy Net Jul 4,000 800 1,499 July-2014 July-2015 12,000 12,000 fromJuly-2014 production July-2015 change 1,471 3,000 18,000 18,000 MMcf/d new wells change MMcf/d 400 9,000 9,000 2,000 15,000 15,000 0 1,000 6,000 6,000 Bakken Eagle Ford Haynesville Marcellus Niobrara Permian Utica Bakken Region 0 12,000 12,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Natural gas production 3,000 3,000 million cubic feet/day 9,0009,000 million cubicU.feet/day month over month S. Energy Information Administration | Drilling Productivity Report3 0 0 FordFord Haynesville Marcellus BakkenEagle Eagle Haynesville MarcellusNiobrara NiobraraPermian Permian UticaUtica 7,000 6,000 6,000 Bakken

+50

-78

Gas -28

6,000

3,0003,000

5,000 0

4,000

3,000

400 U. S. Energy Information Administration | Drilling Productivity Report U. S. Energy Information | Drilling Productivity Report Prairie Business Magazine JulyAdministration 2015 200

2,000 1,000

0

0

1,000 0

Legac

million c 0 (100) (200) (300) (400) (500) (600) (700)

Indica

million c

350 300 250 200 150 100 50 0 -50 -100 -150

Natura

million c

-28

Gas -28

600

0

8,000

July-2014 July-2014

1,000 9,000 9,000

1,0001,000 New-well gas production per rig barrels/day thousand cubic feet/day 250250 750 750Region 3,600 Bakken 600 New-well production per rig per 0 0 oil new-well oil production rig New-well gas production per3,000 rig 500 500 500 FordFord Haynesville Marcellus BakkenEagle Eagle Haynesville MarcellusNiobrara NiobraraPermian Permian UticaUtica barrels/dayBakken thousand cubic feet/day rig count 2,400 400 3,600 250 250 1,800 600 Legacy oil production change Legacy oil production change 300 new-well oil production per rig thousand barrels/day thousand barrels/day 3,000 1,200 0 0 200 500 100 0 0 400

9,000

thousand feet/day thousand cubic feet/day 1,250cubic

654 July July-2014 July-2014 July-2015 631 JulyJuly-2015 654

Oil +23 Oil

July-2015

New-well gasgas production perper rig rig New-well production

New-well oil production per per rig rig New-well oil production 1,250 1,250 barrels/day barrels/day

July-2014

1,500

2 2

Bakken EagleEagle Ford Ford Haynesville Marcellus Niobrara Bakken Haynesville Marcellus NiobraraPermian Permian UticaUtica

2 2 SOURCE: U.S. DOE ENERGY INFORMATION ADMINISTRATION

18,000 15,000 12,000 9,000 6,000 3,000 0

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47

|BY THE NUMBERS|

| SPONSORED BY

|

Oil Producing

Wells

Average Daily

Production (barrels)

Mar ‘15

+1,967

12,439* 10,472

All time monthly high*

Price

-$55.25

+435,847

$86.72

252

1,227,483, Dec. 2014

Gas

Mar ‘15

1,521,478 Mar ‘14

1,085,631

(% Flared)

- 11%

Mar ‘15

108

- 85

Mar ‘14

370, Oct. 2012

(MCF/day)

Mar ‘14

821,598

All time monthly high:

Gas

$31.47

190

- 62

Mar ‘14

Count

Mar ‘15

All time monthly high:

Mar ‘15

per barrel

Permits

1,190,583

+368,985

Mar ‘14

Average Rig

Total

Mar ‘15

Mar ‘14

193

All time monthly high: 218, May 2012

Coal

Mar ‘15

(Thousand Short Tons)

19%

+105

Mar ‘14

30%

Mar ‘15

2,538 Mar ‘14

2,433

All time monthly high:

All time monthly high:

All time monthly high:

All time monthly high:

$136.29, July 2008

370, Dec. 2014

36%, Sept. 2011

2,924, March 2004 *EIA Original Estimate data (data since 2002)

Employment

Interest Rates 7

Effective federal funds rate 10-year treasury constant maturity rate

6 5

Percent

4 3 2 1 0

Jan2000

Jul2002

Jan2004

Jul2006

Jan2008

Jul2010

Gas Captured/Sold March 2015

14% 5%

81%

14%

5% Gas captured and sold

14%14%

Flared due to challenges or constraints on existing gathering systems

81% Flared due to lack of pipeline connection 5% 5%

Jan2012

Jan4014

Jan 2016

Unemployment Rate Mar-15 Mar-14

Employment Mar-15 Mar-14

North Dakota

3.1

2.7

408,407

Bismarck MSA

3.9

3.4

63,858

62,740

Fargo MSA

3.3

3.3

126,241

122,843

Grand Forks MSA

4.0

4.3

53,420

52,218

Dickinson MiSA

2.7

1.9

22,000

20,240

Jamestown MiSA

4.1

3.5

10,025

10,196

Minot MiSA

4.6

3.6

37,207

37,135

Wahpeton MiSA

3.9

3.9

11,912

11,688

Williston MiSA

2.2

1.4

32,455

30,297

South Dakota

3.5

3.5

435,614

432,148

Rapid City MSA

4.5

4.1

68,122

67,092

Sioux Falls MSA

3.7

3.5

138,468

136,487

Aberdeen MiSA

3.7

3.5

22,709

22,582

Brookings MiSA

3.9

3.4

18,183

17,584

Huron MiSA

3.7

4.0

9,076

8,989

Mitchell MiSA

3.7

3.7

12,779

12,568

Pierre MiSA

3.4

3.2

12,311

12,172

Spearfish MiSA

4.3

4.2

12,120

12,051

Vermillion MiSA

3.8

3.6

7,229

7,197

Watertown MiSA

4.6

4.2

14,719

14,772

Yankton MiSA

3.6

3.5

10,944

10,933

Minnesota

3.8

4.4

2,907,034

2,843,028

Duluth MSA

5.5

6.7

135,224

134,663

Minneapolis-St. Paul MSA

4.0

4.9

1,849,412

1,812,089

Alexandria MiSA

4.7

4.8

19,131

18,578

Bemidji MiSA

5.9

6.8

22,636

21,798

Brainerd MiSA

8.0

8.9

40,824

40,658

Fergus Falls MiSA

5.7

6.4

30,014

28,433

Hutchinson MiSA

5.2

6.4

18,941

18,347

Marshall MiSA

4.3

4.8

15,109

14,626

Red Wing MiSA

4.6

5.0

26,170

25,458

Willmar MiSA

5.0

6.0

23,764

22,207

Winona MiSA

3.8

4.5

29,128

28,055

Worthington MiSA

3.8

4.3

11,440

10,693

SOURCE: N.D. PIPELINE AUTHORITY

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

48

Prairie Business Magazine July 2015

400,792

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