Prairie Business November 2015

Research Hotbed

Public, private entities work to turn South Dakota into a medical research hub pg. 24

The New House Call

Telemedicine expands to include virtual doctor visits at home, work pg. 28

Responding to Workforce Needs

Universities, technical schools create programs to fill region’s workforce gap pg. 32

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New Minot International Airport Terminal

BY MATTHEW D. MOHR

BY DENNIS HEDGE

MELISSA OLHEISER

COREY STEELE

KAYLA PRASEK

KAYLA PRASEK

Paulette Alexander meets with Dr. Stephen Park, a family practice physician for Essentia Health, via Essentia’s telehealth medical weight loss program. The service allows patients from rural communities to meet with specialists without having to travel.

PHOTO: ESSENTIA HEALTH

KORRIE WENZEL, Publisher

KAYLA PRASEK, Staff Writer

BETH BOHLMAN, Circulation Manager

KRIS WOLFF, Layout Design, Ad Design

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Cost evaluation

BY MATTHEW D. MOHR

Businesses have started to return to looking at their operating costs and what it takes to effectively market certain products to a particular market segment. The big powerful e-tailers are calling this the “cost to service” as if it is a new concept. Basic economics, finance and accounting have addressed the idea for a long time as marginal cost, gross profit and through cost accounting.

One of the reasons for this “new” theory, called cost to service, stems from the explosion in freight costs which caught the e-tailers by surprise and forced them to realize cheap prices with no value added was not a long-term winning game.

Foolish small enterprises tried to meet the price threat of e-tailers by cutting prices and discarding value added services, which often led to losses and business failure.

Cost to service is a reinvigoration of the old “A, B, C” customer ranking system which companies tried to use to figure out the best, most profitable and worst, most labor-intensive customers to service. The idea was to keep the best and get rid of the worst. ABC worked for some businesses and often became a disaster for those with low sophistication.

For quite a while, I have suggested big volume web-based sellers failed to recognize the costs of distribution and as a result were not sustainable longterm businesses. With the advent of cost to service analysis, they will become more profitable. The big sellers are extremely intelligent and can accurately pinpoint what they need to analyze effectively. Every item sold to every customer can be analyzed for profitability. The volume web-based sellers are smart enough to figure out what works and what is profitable. As a result, we will see a focused change in how business on the web is handled, creating opportunities and some new challenges.

The biggest challenge will probably come to the delivery services, which rely on web-based business packages. As the large e-commerce sellers demand volume concessions for package delivery services, the package delivery service will be forced to change or go out of business. A shift in cost is bound to occur since eventually someone has to pay for all services rendered. PB

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

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University promotes health and wellness

BY DENNIS HEDGE

With an understanding that a direct relationship exists between success and health and wellness, South Dakota State University has launched an initiative designed to improve the health and wellness of SDSU students, faculty and staff members, as well as other individuals throughout the region.

On Sept. 25, SDSU held a kickoff event for SDSU Health, a university-wide health and wellness partnership comprised of South Dakota State University’s health science programs, student health and counseling services and community partners.

The early focus of SDSU Health has been on creating a culture of health throughout the campus community in which physical and mental health is fostered, a balanced lifestyle is emphasized and personal responsibility to be well is encouraged.

A campus community of healthy students, faculty and staff benefits the university, state and region in many ways. For example, research and observation tell us that improving student wellness can result in fewer class absences, improved student retention and instill healthy living skills and habits that are transformational and last a lifetime.

In conjunction with the creation of SDSU Health, the university is reviewing plans to increase the size of its Wellness Center, not only for fitness space but also clinical spaces — student health services, counseling services, nutrition services, medical laboratory services and pharmacy care services. These enhancements will allow for additional care providers, expanded coverage and more comprehensive care for the campus community. In addition, spaces are being considered which will

improve engagement between academic health science programs and community members.

On the academic side, SDSU Health provides a framework for interprofessional education and collaboration that prepares the next generations of health professionals and scientists to meet global and national health challenges. Under the leadership of faculty experts in health and wellness education, SDSU’s health science colleges, departments and programs will benefit from SDSU Health initiatives to teach students to be among the next generation of leaders in their fields and to better understand the holistic connectedness of the contemporary treatment team.

By bringing together the university’s health science programs, student health and counseling services and community partners as SDSU Health, South Dakota State University has taken a bold step to enhance its campus climate and underscore that good health is the foundation of our shared future and SDSU’s success as an institution. In the coming weeks and months, several programs and services will be implemented by SDSU Health that will encourage and support healthy lifestyles and healthy decision-making. PB

Dennis Hedge Dean and Professor South Dakota State University College of Pharmacy sdsu.pharmacy@sdstate.edu

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M State provides varied channels for workforce training

BY MELISSA OLHEISER

New training opportunities are available for workers throughout the region, thanks to a federal grant awarded last year to Minnesota State Community and Technical College.

In late 2014, M State received a $2.5 million Round 4 Trade Adjustment Assistance Community College and Career Training (TAACCCT) grant from the Department of Labor for the CU Succeed (Construction and Utilities) initiative.

The program will provide individuals with training and certifications for in-demand careers in construction and utilities through the use of mobile training units, workplace readiness and soft skills instruction and workplace experiences.

Integration of technology is a core component of CU Succeed. Its foundational Plus+ (soft skills) course will be offered online, providing participants with the flexibility to complete the course at their own pace, with on- and off-line collaboration among classmates and the instructor.

Also, three mobile training units being created for the program utilize new transportable technologies that allow the college to take hands-on instruction to participants at various locations. This type of technology has been used effectively by community and technical colleges nationwide.

M State mobile trailers will travel to workforce centers, employer partner sites and between M State’s campuses. The mobile trailers will complement M State’s successful welding module, which has been on the road since 2013.

The three mobile units being developed by M State are:

• Commercial Driver’s License: This trailer will house three truck-driving simulators plus classroom space, allowing M State to teach a variety of courses focused around CDLs.

• Safety: This trailer will set up various safety and simulation scenarios to teach participants safe equipment usage and prevention and treatment of injury, including fall protection, electrical safety, machine guarding and first aid, with the main emphasis on OSHA 10/30 General Industry and Construction.

• Precision Measurement: Currently researching industry recognized credentials.

The mobile trailers will be equipped with HVAC systems so they can be used year-round and will contain hands-on equipment for instruction and student practice. M State will use a variety of open educational resources in the mobile training units, such as resources offered by OSHA, MSHA, CDL and Precision Measurement.

M State will showcase the safety mobile training and the welding trailer at the 4th Annual NRASP Safety Conference Nov. 9-10 at the Hilton Garden Inn in Fargo. Please visit www.nrasp.com/conference for registration and conference information.

Northern Region Association of Safety Professionals (NRASP) is a group of professionals from all types of industry who share an interest in and passion for promoting workplace safety and health. The member-run organization works to create opportunities to network, share best practices and stay up-to-date with ever-changing regulatory environments.

For more information on the mobile training units, please contact Melissa Olheiser, melissa.olheiser@minnesota.edu or 218-299-6566, or Teri Dobbs, teri.dobbs@minnesota.edu or 218-299-6564. PB

Melissa Olheiser Industry Liaison, Minnesota State Community and Technical College melissa.olheiser@minnesota.edu

Security beyond the firewall

BY COREY STEELE

Most companies take it as a given that firewalls, antivirus and backups are minimum security controls for the standard business. While it remains true that having a layer-7 aware firewall, solid endpoint protection and recoverable backups are controls every organization should have in place, there’s more to security than firewalls, endpoint protection and backups.

Central to any comprehensive security strategy is visibility of what is going on within the network. This comes in two forms — network monitoring

Systems that provide SNMP and Flow monitoring of the network give visibility into the packets traversing the network on a port-by-port and application basis. Such information can be useful in identifying rogue PCs on the network — such as those infected by a virus — or systems that are producing excessive volumes of traffic from one application type or another. At the end of the day, this visibility gives insight into what constitutes a “normal” day on your network.

SIEMs are another class of software altogether, designed to collect logs from various systems, to analyze those logs for anomalous events and alert on those events. These alerts typically come in the form of emails or texts. The analysis that comes with those alerts is highly sophisticated to identify anomalies across all systems — not just the network, but across domain controllers, workstations, network appliances, switches, routers, antivirus solutions, data loss prevention systems and any other variety of systems you send logs from to the SIEM. Such systems can be quite powerful and insightful.

So, while state-of-the-art firewalls, antivirus and backups provide protection against the myriad of threats that the average network may face, they are not sufficient to protect your network from the totality of threats that your network faces on a day-to-day basis. To protect against the full range of attacks, you need security that extends beyond the firewall. PB

systems and log aggregation and alerting systems. Network monitoring systems come in the form of SNMP monitoring systems and Flow monitoring software. Log aggregation and alerting systems are most typically referred to as security information and event management systems, or SIEM.

Corey Steele Network Security Engineer, High Point Networks corey.steele@highpointnetworks.com

“To protect against the full range of attacks, you need security that extends beyond the firewall.”

General Atomics signs lease with Grand Sky

Grand Sky, America’s first unmanned aerial systems business and aviation park in Grand Forks, N.D., announced it has signed a lease with General Atomics Aeronautical Systems Inc., a leading manufacturer of remotely piloted aircraft systems, radars and electro-opic and related mission systems solutions.

General Atomics intends to use its leased 5.5 acres for a hangar facility, which will support aircraft operations as part of an aircrew training academy to be established in Grand Forks. A groundbreaking for the facility is anticipated this fall, with construction completed as soon as early 2016.

North Dakota UAS Test Site announces contract with NASA

The North Dakota Department of Commerce, operating through the Northern Plains UAS Test Site, has been awarded a five-year contract to support NASA unmanned aircraft systems research.

Under the contract, the Department of Commerce received an initial award of $197,950 to support a NASA developed UAS traffic management project utilizing local partners, including the University of North Dakota, Sensurion Aerospace, Altavian and Botlink.

High Point Networks, Marco named to CRN Fast Growth 150

Marco Inc., of St. Cloud, Minn., and High Point Networks, of West Fargo, N.D., have both been named to The Channel Company’s 2015 CRN Fast Growth 150 list. Based on gross revenue over the twoyear period from 2012-14, the list ranks solution providers based in North America with significant economic growth.

Marco was also recently recognized by Great Place to Work and Fortune magazine as one of the 100 Best Workplaces for Women.

Shown is the most recent site map for Grand Sky. IMAGE: GRAND SKY

Alerus acquires Beacon Bank

Grand Forks-based Alerus has acquired Twin Cities-based Beacon Bank, a community-focused bank with three locations in the Twin Cities and two in Duluth, Minn. The merger will strengthen Alerus’ presence in the Twin Cities and represents its entrance into the Duluth market.

Beacon Bank’s three Twin Cities offices, located in Shorewood, Excelsior and Eden Prairie, Minn., and two Duluth offices will remain open and operate as usual, and will transition to the Alerus name in early 2016.

JLG Architects named among Top 50 Architects

JLG Architects, headquartered in Grand Forks, N.D., has been ranked No. 19 of the Top 50 U.S. Architecture Firms in Business by Architect Magazine. JLG is the only firm in North Dakota to have ever made the list.

Architect Magazine is the publication of the American Institute of Architects, the national professional association of architects. The Top 50 U.S. Architecture Firms is the magazine’s annual ranking.

Midcontinent announces first area for gigabit Internet

Midcontinent Communications has announced customers in Fargo and West Fargo, N.D., and Moorhead, Minn., will be the first to receive gigabit Internet from the service provider.

“We chose the Fargo metro area as the first area for Midco Gig because of the state-of-the-art technology we’ve been installing in the metro area during our Fargo build-out that started in 2014 and will continue through 2016,” says Pat McAdaragh, president and CEO of Midcontinent.

Midcontinent has committed to delivering gigabit Internet speeds to its entire footprint by the end of 2017. An exact gigabit launch date has yet to be determined.

Kilbourne Group purchases historic Black Building

Kilbourne Group and DTL Properties Inc. have reached an agreement for the sale of Fargo, N.D.’s historic Black Building, with the sale expected to be final in early 2016. The nine-story Black Building was constructed in 1930 at 118 Broadway N., in downtown Fargo.

“We are honored to assume stewardship of this significant Fargo landmark,” says Doug Burgum, founder and chairman. “We are excited about the future of this incredible structure, and we look forward to receiving input and inspiration from tenants and the community regarding the Black Building’s next chapter.”

The purchase also includes the three-story building immediately south of the Black Building, which currently houses Scan Design, as well as a parking lot at 217 Roberts St.

Beckman & Kunkin joins Eide Bailly

Beckman & Kunkin, a certified public accounting firm that has served the Scottsdale and Phoenix, Ariz., area for more than 25 years, has joined Eide Bailly, a regional certified public accounting and business advisory firm.

Beckman & Kunkin shareholders Howard Beckman and Adam Kunkin, along with their team, will join Eide Bailly and continue to operate from their Scottsdale location under the Eide Bailly name. This move will add a second Eide Bailly location in the Phoenix metro area.

Eide Bailly’s headquarters is in Fargo, N.D.

Advanced Elements expands ownership

Advanced Elements, the holding company of AE2S, AE2S Construction, AE2S Nexus, AE2S Operations and additional entities, has expanded ownership of the firm to include 12 additional shareholders. Ownership of Advanced Elements is offered to entity employees by invitation from existing shareholders.

The new owners of Advanced Elements in 2015 include Gary Cline, chief development officer of AE2S in Phoenix Ariz.; Mike Chorne, instrumentation & control systems technician for AE2S in Bismarck, N.D.; Sue Hass, marketing manager for AE2S in Grand Forks, N.D.; Megan Houser, human resources manager for AE2S in Grand Forks; Jon Lefers, project engineer for AE2S in Madison, Wis.; Matt Odegard, instrumentation & controls technician for AE2S in Grand Forks; Craig Pietruszewski, controller for AE2S in Grand Forks; Lucas Rengstorf, GIS coordinator for AE2S in Grand Forks; Dustin Schultz, operations manager for AE2S in Williston, N.D.; Nick Stattelman, survey practice leader for AE2S in Fargo, N.D.; Aaron Vollmer, operations manager for AE2S in Maple Grove, Minn.; and Jason Whitesock, instrumentation & controls technician for AE2S in Grand Forks.

Western, Basin, Heartland join Southwest Power Pool

estern Area Power Administration’s Upper Great Plains Region, Basin Electric Power Cooperative and Heartland Consumers Power District has transferred functional control of the integrated transmission system to Southwest Power Pool and started operating in the regional transmission organization.

The move increases generating capacity for all three power companies.

Braun Intertec acquires Apex Geoscience

Braun Intertec, a Minnesota-based geotechnical engineering, testing and environmental consulting firm, has acquired Apex Geoscience, a Texas-based geotechnical engineering, testing and environmental consulting company.

With the acquisition, Braun Intertec increases its presence in Texas and expands into Louisiana and Oklahoma.

SDSU adds graduate degree in industrial/ organizational psychology

South Dakota State University in Brookings will add a Master of Science degree in Industrial/Organizational Psychology starting in fall 2016. Industrial/organizational psychology is a sub-discipline of psychology, which applies research to improve the well-being and performance of employees and their organizations. SDSU officials said demand for this degree comes from people currently employed in South Dakota as training and development specialists and management analysts.

Once fully operational, SDSU plans to graduate about nine students from this graduate degree program each year.

Gustad named controller of MSUM Alumni Foundation

Carol Gustad has been named controller of the Minnesota State University Moorhead Alumni Foundation, where she will direct all accounting and finance functions and maintain financial records and fiscal controls.

Gustad has more than 20 years experience in financial accounting and finance, and most recently was the chief financial officer of the NDSU Development Foundation.

KLJ Solutions welcomes Nagel

John Nagel has been hired by Bismarck, N.D.-based KLJ Solutions, the parent company of a diversified family of companies focused on progressive engineering, advanced oilfield operations and innovative property development. Nagel will serve as vice president of new company development to create and activate new businesses and technology-driven innovations. His primary focus will be on automation and network security.

Prior to joining KLJ Solutions, he served as vice president of client engagement and delivery at ObjectFrontier Software, a leading outsourcing software development company.

Arvig promotes Greene

Arvig has promoted Lisa Greene to senior manager of marketing for the Perham, Minn.-based telecommunications company. Greene will be responsible for Arvig’s marketing strategy and execution. She will continue to lead the company’s online marketing and branding and provide direction to the process of developing and managing the company’s new and existing product lines.

Greene has been part of the Arvig team since 2009, having most recently served as the company’s marketing manager.

The Sanford Project selects new leader

Sanford Health’s initiative to cure type 1 diabetes has chosen a world-renowned physician, researcher and inventor as its new leader. Dr. Eckhard U. Alt has been appointed to oversee The Sanford Project in Sioux Falls, S.D., as its Todd and Linda Broin Distinguished Professor and Chair.

In addition to leading The Sanford Project, Alt will retain his roles as professor of medicine at Technishe Universitat in Munich, Germany, and professor at Tulane University in New Orleans, La. He will also continue to serve as chairman of the board for InGeneron Inc., a company that develops cellbased technologies for health care and veterinary and life science research.

Prairie Business hires new editor

Prairie Business magazine has named Lisa Gibson its next editor. Gibson has been editor of Agweek, a weekly ag publication based out of the Grand Forks Herald’s office, since 2012. Gibson also has overseen other niche publications for the Herald, as well as working as a Herald reporter from 2006-09. From 2009-12, she was employed by BBI International as associate editor and then editor of Biomass Power & Thermal and Pellet Mill magazines.

“I’m thrilled to begin my adventure in a new industry, with new people and different opportunities,” says Gibson. “Prairie Business is a great publication. I’m excited to apply the tools I gained as editor of Agweek to this new challenge and work with the magazine’s existing and experienced staff.”

Gibson will start as editor with the December issue.

Lisa Gibson

Carol Gustad

Dr. Eckhard Alt

Lisa Greene

John Nagel

Altru names chief information officer

Altru Health System in Grand Forks, N.D., has named Mark Waind its chief information officer. Waind joined Altru’s information services team in 1997, serving as the customer support manager through 2006, when he was promoted to administrative director of information services.

Alerus names Cheever CFO

Alerus Financial Corporation has named Dan Cheever its chief financial officer and executive vice president. Cheever has more than 30 years of experience in the financial services industry, most recently serving as interim CFO for Alerus since March.

Prior to joining Alerus, Cheever served as CFO of Marquette Financial Companies, managing director of GMAC ResCap, chief operating officer of Federal Home Loan Bank of San Francisco, CEO and CFO of Access Financial and CEO, president and director of PriMerit Bank.

Border States Electric hires Busch

Mike Busch has joined Border States Electric in Fargo, N.D., as vice president of human resources. Busch will lead BSE’s human resources team to support growth and drive continuous improvement. He has also been appointed to the company’s Executive Council.

Busch gained his human resources experience with Whirlpool Corporation and Eaton Corporation. Most recently, Busch was with HR Value Partners, working with small to midsize businesses on recruiting and talent management challenges.

Moore Engineering hires CFO

Moore Engineering, of West Fargo, N.D., has hired Jeff Slaby as chief financial officer. Slaby will be responsible for managing the employee-owned company’s overall financial structure.

Slaby most recently worked for CoreLink Administrative Solutions in Fargo, a joint venture between Blue Cross Blue Shield of North Dakota and Blue Cross Blue Shield of Nebraska.

Dan Cheever

Mark Waind

Jeff Slaby

Mike Busch

Guiding hand

Essentia Health leader oversees significant growth

BY KAYLA PRASEK

In the year and a half since Tim Sayler took on his role as chief operating officer of Essentia Health West Region, he has helped guide the health system through a period of significant growth, including a $60 million addition to the Fargo, N.D., hospital. “We’re adjusting to the rapid growth and significant changes in western Minnesota and eastern North Dakota,” Sayler says. “We’ve added a number of providers, and have gone through a significant construction phase, which will continue into the future.”

Sayler came to Essentia Health with an extensive background in and passion for health care administration. He earned a bachelor’s degree in business administration from Minnesota State University Moorhead and a certificate in hospital administration from Concordia College in Moorhead. He also has a master’s degree in health care administration from the University of

Colorado in Denver. Prior to joining Essentia, he worked at Altru Health System in Grand Forks, N.D., for 27 years, where he served as COO before going to St. Joseph Regional Medical Center in Lewiston, Idaho, where he served as chief executive officer and president for four years. Sayler joined Essentia in March 2014.“In college I knew I was going to do something in business, and I found health care interesting,” Sayler says. “I look at it as a helping industry. In particular, we have an opportunity to impact people’s lives. I’ve been lucky to be in a position to develop programs and services to help with our patients’ needs.”

As COO of Essentia Health West Region, Sayler oversees five hospitals, 25 community clinics, three long-term care facilities, two assisted-living facilities and two independent-living facilities in western Minnesota and eastern North Dakota. Sayler’s responsibilities include setting

Tim Sayler, chief operating officer of Essentia Health West Region in Fargo, N.D., has helped guide the health care provider through substantial growth since joining the company in March 2014. PHOTO: KENSIE WALLNER

“THE QUALITY OF HEALTH CARE AND SERVICES WE PROVIDE TO OUR PATIENTS ARE HOW THEY CAN MEASURE OUR VALUE.”

- TIM SAYLER, CHIEF OPERATING OFFICER, ESSENTIA HEALTH

the strategic direction for the region and overseeing the operations of the region.

“The industry is going through significant changes, and we’re adjusting to how care is delivered,” Sayler says. “It requires re-thinking where we’re trying to focus our time. We want to deliver value to our population as the costs of health care services continue to rise.”

Sayler says the team aspect at Essentia has been key to helping the health system adjust to its growth. “What I’m seeing in the west region is the development of a team of individuals from leadership down to staff and providers aligned around our patients and our mission. That in itself is a measure of improvement of our health care. We’re also working around facility improvements and increasing our number of providers.” Sayler won’t take sole credit for Essentia’s success, saying “most of what I’ve accomplished is in a team.”

In addition to ensuring Essentia is adjusting to the growth it’s experienced, Sayler and his team have placed increasing focus on quality. “The quality of health care and services we provide to our patients are how they can measure our value,” Sayler says.

As for its growth, Essentia Health West Region now has about 4,000 staff. In Sayler’s time with the health system, it has grown to about 400 providers, while the Fargo hospital grew to 133 beds. About 1,400 patients are served daily. “We’re moving to be a tertiary

center for specialty care, particularly in heart, spine, stroke, cancer and orthopedic care, which are the areas we’ve seen the most growth,” Sayler says. “Our women’s health care continues to also be a strong point for us.”

In addition to the expansion at Essentia’s Fargo hospital, which opened this summer, construction just started on a new primary care clinic in the city. “Fargo is constantly growing,” Sayler says. “We’ve spent a lot of time planning and figuring out where we need to be in the next couple years to accommodate that growth to make sure the facilities and number of providers necessary are in place.”

Sayler has used Essentia’s growth as an opportunity to immerse the health system into the community. “Since I’ve been here, we’ve been trying to be more engaged on the community side and are working with other health care organizations to see how we can be involved.” Essentia has developed a partnership with Fargo’s new Ed Clapp Elementary School, which is across the street from the hospital, to build health into education. “We’re working with the community to be out there and improve the health status within our region.” PB

Kayla Prasek Staff Writer Prairie Business 701-780-1187, kprasek@prairiebizmag.com

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Scientist Jill Weimer works in the Weimer Laboratory at the Sanford Children’s Health Research Center in Sioux Falls, S.D. Weimer, who is also associate director of the research center, focuses her research on central nervous system development.

PHOTO: SANFORD HEALTH

Associate scientist Kristi Egland examines a sample in the Egland Laboratory at the Sanford Cancer Biology Research Center in Sioux Falls, S.D. Egland’s research focuses on early diagnosis of breast cancer.

PHOTO: SANFORD HEALTH

Dr. Megan Landsverk examines a sample in the Sanford Medical Genetics Laboratory in Sioux Falls, S.D., where she is the director of the Molecular Genetics Division.

PHOTO: SANFORD HEALTH

Dr. Michelle Baack (right) and Angela Wachal work in the Baack Laboratory at the Sanford Research Center in Sioux Falls, S.D. The Baack lab focuses on normal growth, brain development and vascular health in children.

PHOTO: SANFORD HEALTH

Lab Coordinator Friederike Gedge works with a sample at the Sanford Health BioBank in Sioux Falls, S.D.

PHOTO: SANFORD HEALTH

Research hotbed

Public, private entities work to turn South Dakota into a medical research hub

BY ROB SWENSON

South Dakota is making headway in its goal to become a national player in developing research. Advancements to encourage research have been particularly evident in recent years.

Two business parks devoted to housing research companies are being established in eastern South Dakota. Meanwhile, laboratory work on medical advancements and other research with commercial potential is being conducted on multiple public and private fronts.

Significant contributors include Sanford Health, Avera Health, South Dakota State University, University of South Dakota, South Dakota School of Mines and Technology and the Sanford Underground Research Facility. Institutions in Sioux Falls such as the Good Samaritan Society and businesses such as SAB Biotherapeutics and Alumend also contribute.

South Dakota’s emphasis on developing research unofficially began in October 2003, when then-Gov. Mike Rounds released his so-called 2010 Initiative. The plan contained five goals for boosting economic development in South Dakota, including making the state a leader in research and technology development.

Rounds — who now serves in the U.S. Senate — completed eight years as the state’s chief executive in January 2011. But state and community interest in research development continues. “We’ve obviously made progress,” says Mel Ustad, director of commercialization for the Governor’s Office of Economic Development.

Progress is most evident in areas in which medical research and agricultural technology come together, Ustad says. Agriculture and research are linked not only because animal and plant health are important in the heavily rural state but because animals and plants often are used in research for human products.

South Dakota’s generally low-cost business environment also is considered a plus for research development.

“South Dakota is well positioned for those opportunities because of its agricultural capabilities and also the medical aspect of that with research at Sanford and Avera. Having those capabilities in the state, with its business climate, makes the state an attractive place,” Ustad says.

“The long-term objective is to get products commercialized so that you’re creating high-skill jobs, but you’re also going to have continued research because they’re constantly developing the next application of future products.”

Research Institutions

Sanford Research, which is part of Dakotas-based Sanford Health, is one of the most prominent research institutions in South Dakota. Gifts totaling more than $600 million from billionaire philanthropist T. Denny Sanford have helped the health system that carries his name expand research in areas such as type 1 diabetes, breast cancer and genomics.

Research is largely based in a 300,000 square-foot office and workspace building in northeastern Sioux Falls that Sanford Health acquired in

2009. But research work also takes place at other Sanford locations in Sioux Falls and elsewhere in the system’s multistate network.

Sanford Research is a nonprofit entity headed by David Pearce, who was promoted to president of the division in January 2015. Sioux Falls is becoming a hub for research activities, Pearce says. “Nationally, we’re recognized for a number of our programs now,” he says.

Areas of special expertise include children’s and Native American health issues. In addition, Sanford has an ownership stake in SAB Biotherapeutics, a company working with cattle to produce human antibodies to treat diseases in people. The Sioux Falls Development Foundation is an equity investor in the company.

Pearce points out that Sanford Research received nearly $12.6 million in National Institutes of Health funding in fiscal year 2015. That’s more than the combined total received by several other research organizations and universities in the state. However, other federal sources of research funding also exist.

Research is also an emphasis at Avera Health, a competing regional system based in Sioux Falls. Human genetics is among the focal points of research at Avera. “Human genetics is the future of medicine. There’s no question about it,” says Ryan Hansen, executive director of the Avera Institute for Human Genetics and the Avera Research Institute. “There is a massive effort going on across the world.”

Since 2007, Avera has been collaborating with Vrije Universiteit, a university in Amsterdam in the Netherlands. Avera is assisting in the world’s largest study of twins. Studying the DNA of twins over their lifetimes can provide insights in the influence of genes and environmental factors to life.

Clinical research is another area of emphasis at Avera. In addition, Avera owns Alumend. The life science company has created a light-activated, chemical therapy that is being developed into clinical treatment to repair blood vessels in people who suffer peripheral arterial disease. Alumend’s Natural Vascular Scaffolding product is working its way through the lengthy, federal regulatory process for commercialization.

“This would be a significant breakthrough,” Hansen says.

Academic research in South Dakota takes place primarily at three of the state’s six public universities — USD in Vermillion, SDSU in Brookings and SDSMT in Rapid City.

Fifteen years ago, state schools received approximately $30 million from federal agencies for research projects. Now they receive roughly $100 million a year, says Paul Turman, vice president for academic affairs for the South Dakota Board of Regents.

Increasing research has been a critical component of the state university system for about a decade, Turman says. Investments in long-term research infrastructure, such as expanding doctoral programs at universities, are beginning to pay off with the creation of startup companies, he says.

Limited state resources have increased the need for universities to collaborate in academic offerings and research projects. The federal Experimental Program to Stimulate Competitive Research (EPSCoR) has helped South Dakota build collaboration and earn more federal grants, Turman says.

South Dakota EPSCoR’s mission is to increase research and education in science, technology, engineering and mathematics to drive science-based economic development. James Rice, a chemistry professor at SDSU, directs the state EPSCoR program. “What we try to do is build bridges between the universities and the private sector,” Rice says.

Rice also directs a statewide BioSNTR grant project in which researchers pursue advances in bioscience and biotechnology. BioSNTR stands for Biochemical Spatio-temporal Network Resources. Researchers are exploring, for example, how cells respond to foreign objects. The research could help design implants that the human body won’t reject.

About 25 team members are involved in the BioSNTR project. “These projects are collaborative because there’s so much you need to have,” Rice says. The prospects for job creation and economic development in South Dakota are exciting, he says. “I don’t think people realize how much is going on.”

Research Parks

Two research parks are taking shape in eastern South Dakota. They are affiliated with the state’s two largest universities.

Construction work on the first one, the Research Park at SDSU, began in Brookings in 2008. The park sits on 125 acres near the SDSU campus, U.S.

Highway 14 and Interstate 29. Three buildings have been constructed so far — an Innovation Center, Seed Tech Lab and a spec building for businesses.

The 44,000-square-foot Innovation Center was built in 2008 and expanded in 2012. It is a business incubator that also includes office space. Discovery Benefits, which expanded from Fargo to Brookings last year, occupies half of the spec building. The company provides employee-benefit services.

The Research Park at SDSU reflects a collaboration that began in 2004. Parties involved include the city, Brookings County, Brookings Economic Development Corporation, SDSU, SDSU Foundation and other state and private stakeholders.

“We’re trying to help connect industry and the university,” says Dwaine Chapel, executive director of the park. “We’re trying to bring different industries to SDSU, the community and the region.”

In recent years, Brookings has become home to several relatively young businesses that have spun out of research at SDSU. Prairie Aquatech, for example, converts soybean meal into high-quality feed for fish and other animals.

Fifty-five miles to the south, in Sioux Falls, a new research park is transitioning from concept to physical development. It’s been named the USD Discovery District.

Rich Naser, president of the South Dakota Technology Business Center in Sioux Falls, doubles as the president of the 80-acre Discovery District, which is next to the University Center campus. The Technology Business Center is a nearby incubator and training center that could help supply future tenants for the Discovery District.

Plans for the Discovery District were announced in 2015. The project reflects a collaboration that includes the SDBOR, USD, city of Sioux Falls, Forward Sioux Falls, Sioux Falls Area Chamber of Commerce and Sioux Falls Development Foundation.

Work on roads and utilities in the new park is expected to begin next spring. Planning for the first building in the park is also under way. How quickly the park develops will depend on financial support and the need for business space, Naser says.

The city has budgeted $150,000 to assist in park development next year. Forward Sioux Falls, which is a joint program of the Chamber and Development Foundation, also has earmarked a new $150,000 investment in the park.

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Meanwhile, the Board of Regents is requesting that Gov. Dennis Daugaard and the South Dakota Legislature provide $300,000 for the research park in Sioux Falls and the same amount for the research park in Brookings.

To date, funding for the Discovery District has come primarily from USD and Forward Sioux Falls, but the city also has contributed. In the future, land leases will become the main source of revenue, Naser says, but that’s going to take a significant amount of time to generate.

Naser expects the growth of health care services in Sioux Falls to be a good complement to the development of research-related businesses in the region.“We are a healthcare-driven community now,” Naser says. “That’s a big economic driver.”

The Royal C. Johnson Veterans Memorial Medical Center adds to the strong health care presence of Sioux Falls.

Other Research Fronts

Among significant health care forces in Sioux Falls, the state’s largest city, is the Good Samaritan Society. The organization is based in Sioux Falls but provides services in 25 states, making it more of a national than state business. Good Samaritan Society operations include more than 180 skilled nursing homes.

Good Samaritan’s Vivo Innovation Center employs seven people in Sioux Falls who focus on improving the lives of seniors by, for example, designing senior-friendly living environments, especially in homes. It’s a service-oriented, rather than product-centered, side of research. “We’re looking to transform the aging process by bringing people more services and support,” says Kelly Soyland, director of innovation and research at Vivo.

South Dakota’s overall emphasis on research corresponds closely with the development of the Sanford Underground Research Facility, which is located in the former Homestake Gold Mine in Lead in the Black Hills. The mine closed in 2003, and the company donated the mine to the state for use as a laboratory. T. Denny Sanford, the philanthropist, donated $70 million to assist with the project. The South Dakota Legislature also committed $40 million in state funding.

Now, the South Dakota Science and Technology Authority operates the lab under the terms of an agreement with the Lawrence Berkeley National Laboratory, which is a U.S. Department of Energy lab managed by the University of California.

Research entities at Sanford Underground Research are exploring challenging issues, such as the origin of matter, the nature of dark matter and the properties of neutrinos.

Rapid City is also home to increasing research activity. The Rapid City Economic Development Foundation owns and operates a business incubator on the SDSMT campus, and it’s full. The Black Hills Business Development Center is home to 21 businesses, 157 workers and 50 interns, says Terri Haverly, vice president of the Development Center. “It’s certainly been successful,” says Haverly, who doubles as a Republican state senator.

The center’s board recently voted to explore the viability of building a second incubator, but has not decided yet whether to build one. The state must invest its resources wisely, she says, but she is among the state and community leaders who want to continue supporting the development of cutting-edge research in the state.

“I’m very much a supporter of research leading to commercialization and working with industry,” she says. She’s not alone. PB

Rob Swenson Contributing writer RobSwensonMediaServices@gmail.com

The new house call

Telemedicine expands to include virtual doctor visits at home, work

BY KAYLA PRASEK

Paulette Alexander meets with Dr. Stephen Park, a family practice physician for Essentia Health, via Essentia’s telehealth medical weight loss program. The service allows patients from rural communities to meet with specialists without having to travel.

PHOTO: ESSENTIA HEALTH

Dr. Stephen Park, a family practice physician with Essentia Health, uses Essentia’s telehealth services to visit with patient Paulette Alexander. Park sees patients via telehealth as part of Essentia’s medical weight loss program.

PHOTO: ESSENTIA HEALTH

Five years ago, visiting with a doctor from home via video may have seemed unimaginable. Today, thanks to ever-expanding technology, Sanford Health and Avera Health patients can do just that, and soon Altru Health System and Essentia Health patients will be able to do the same.

This service is just another on a continually growing list of telemedicine services each of the region’s major health care systems provides to its patients. While each is slightly different, the concept is the same: log in via desktop or laptop computer, tablet or smartphone from home or work and visit with a physician. It saves time and money, particularly for routine illnesses.

Virtual Visits

Sanford Health, headquartered in Sioux Falls, S.D., started video visits one year ago for South Dakota and Minnesota patients and recently expanded the service to North Dakota. However, the health care provider started e-visits four years ago.

An e-visit is a questionnaire, available in the patient portal, which asks specific questions about symptoms. A provider then looks at it and the patient’s records, and will reply back with medical advice and may prescribe medication; the patient may also be asked to make an appointment in person. “If you’re someone who gets, for example, the typical sinus infection every year, this is a great option for you,” says Dr. Allison Suttle, chief medical officer. “The provider can compare your symptoms with your medical chart and can prescribe medicine if necessary.” E-visits are only available to patients in South Dakota and Minnesota.

Suttle says video visits are ideal for patients who become sick after hours or on weekends or who live in rural communities. “You might have pink eye or influenza, and instead of going to acute care, you can go into the patient portal and request a video visit and can be talking with a physician within an hour,” Suttle says. The physician will ask the same questions as he or she would if the patient had come into the clinic. “Our focus is on providing the same quality of care as you would receive in person,” Suttle says.

Patients across the Sioux Falls, S.D.-based Avera Health system have access to AveraNow, an app- and web-based video visit service rolled out in June. No appointment is necessary, and certain Avera providers are currently only providing services via AveraNow to treat a set list of common health problems “that we feel comfortable diagnosing without examining the patient,” says Dr. Jason Knutson, a family medicine physician at Avera Medical Group McGreevy 69th & Western in Sioux Falls. Knutson called it “convenient” and “perfect for flu season.”

Grand Forks, N.D.-based Altru Health System has a planned release for e-visits in 2016, which will be followed by adding video visits. “We really wanted to get the foundation on the patient portal more built up, so we have more functionality available,” says Mark Waind, chief information officer. “This is the next logical step.” At Altru, patients in non-emergency situations would fill out a questionnaire which would then be evaluated by a physician. Video visits would be a scheduled visit.

Essentia Health, whose west region is based in Fargo, N.D., is working on some type of home video visits for its patients, says Maureen Idekar, director of telehealth. “We are looking at that type of service and and have some capacity that we are developing. Consumers expect that access,” Idekar says.

Sanford added e-visits and video visits as a response to the area’s need for access, Suttle says. “There’s a physician shortage, especially in rural areas, and we don’t want to delay our patients from receiving quality care. Our patients told us they wanted easy access, and this is a way for patients to be seen while they’re still at work.”

Avera started working on adding video visits about five years ago, Knutson says. “Everything is online, and we wanted to offer a service that would be a little bit more and be on the cutting edge. We wanted to offer another avenue for patients to have health care.”

In the year Sanford has offered video visits, it has been “hugely successful,” Suttle says. “The patients who do use it love it. They feel they’re getting the same quality of care, and our providers feel their patients are getting service sooner.”

Because Avera just added its service, Knutson acknowledged it takes awhile to catch on so the organization expected it to be slow initially. However, “we’re doing better than we thought we would. We’re exceeding the goals we set, so we’re expecting it to get busier as the service catches on,” Knutson says.

Having the ability to provide video visits “revolutionizes health care,” Knutson says. “It changes health care dramatically. South Dakota is a very rural state, so this opens the door for our patients. They could have a visit with us from anywhere in the country.”

Other Uses

Video visits are actually just an extension of telemedicine, a service Sanford, Avera, Altru and Essentia all provide. Telemedicine allows patients, usually in rural communities, to go to their home clinics and have appointments with specialists in other locations. It can also be used for physicians from small clinics and hospitals to speak with physicians in a major hospital about the next step of care for a critical patient.

Sanford started its telehealth programs in 2011, after “we knew we could utilize this technology to provide access to our rural locations, while keeping those patients local but giving them access to our specialists,” says Susan Berry, enterprise director of telemedicine services at Sanford.

Sanford’s formal telehealth program, One Connect, gives emergency room providers access to physicians at the major Sanford hospitals to assist in critical situations. The program also provides virtual inpatient consultations with specialists, remote monitoring of ICU patients, telepharmacy to verify medications before administering and teleradiology to read CT and MRI scans. On the clinic level, 40 specialists offer virtual consultations for clinics that don’t have specialists come in for outreach programs. Sanford’s mobile medical trucks in the Bakken are also outfitted with telehealth services for any assistance those providers may need.

Altru started introducing telemedicine services in 2008 and slowly expanded its service line, Waind says. Altru is mainly providing specialty services to its rural facilities, and has 72 providers who have connected to more than 40 sites. Waind says Altru expects to conduct more than 3,000 telehealth visits this year, up from 2,600 in 2014. “We’re expanding each year based on the demand in our region,” Waind says. “We’ve used the services when our providers can’t go to their outreach clinics or when the patients can’t come into us because of weather. It’s the perfect application for rural settings like North Dakota.”

When Altru added its telehealth services, it was because the organization knew there was a need for it, particularly for rural patients. “We try to develop our services for our patients,” Waind says. “As technology improves, this seemed like a natural service. It provides convenience and can eliminate the need for transporting patients.”

Essentia added telehealth services in 2011, but has seen the services grow substantially this year, already adding eight programs in the past year with plans of adding three more. Essentia provides hospital-based services, including tele-emergency room, which connects rural hospitals to the ER in Fargo. “If it’s a complex problem, it’s nice for those physicians to have more support from experts,” Idekar says. Essentia also provides diabetic care, medical weight loss, medical therapy management, psychiatry, vascular wound care, oncology and cardiology services via telehealth. “The specialist could be at any of our major hospitals while the patient only has to go to their home clinic,” Idekar says.

Essentia felt a sense of urgency to be able to provide specialty care to its rural clinics, which is where telehealth came in. “It’s pretty common at the rural sites to not have those services,” Idekar says. “Our

patients are able to avoid traveling when they’re very ill, and we’re able to take these scarce resources and stretch them to improve access.”

At the same time, “we’re able to maintain the same quality and services that are provided in the clinic because all of the infrastructure is the same,” Idekar says. “It’s just a more convenient route.”

Looking Forward

As for the future, Suttle says health care is rapidly changing, and technology changes are a major part of it. “There’s a very good chance that 70 percent of primary care visits could be virtual in the near future. Preventative care is going to become the norm, rather than the old way of waiting for patients to be sick. It’s an opportunity to reach out to patients in new ways,” Suttle says.

While there are currently limitations on how far an e-visit or video visit can go, Suttle says new technology is coming which could allow patients to take their own vital signs or detailed photos of their ears and throats.

“Health care is changing, but everything is becoming more about instant access,” Waind says. “Health care isn’t any different. Eventually all non-urgent care will be handled via a virtual visit.”

Idekar says these types of services are going to keep the population healthier. “People will be able to get treatment faster, which will help cut down on costs so they can focus on wellness and prevention.”

Kayla Prasek Staff Writer Prairie Business 701-780-1187, kprasek@prairiebizmag.com

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Responding to workforce needs

Universities, technical schools create programs to fill region’s workforce gap

BY KAYLA PRASEK

Minnesota State Community and Technical College created a mobile welding trailer to help fill the state’s workforce training needs. The trailer travels around the state, taking M State’s welding education to students. PHOTO: M STATE

In nearly every corner of the Northern Plains, there is a workforce shortage, and the region’s institutions of higher education are doing what they can to fill that need. From alternative routes to degrees, additional training and initiatives, higher ed is trying to step in and collaborate with industry.

The University of Mary in Bismarck, N.D., is helping address the region’s workforce shortage with its new Year-Round Campus program. Students enrolled in the program can earn their bachelor’s degrees in 2.6 years. “This is an opportunity to re-think how a university education is delivered, especially with the rising costs, rising debt load and rising length of completion facing our students,” says Michael McMahon, assistant vice president for enrollment services. “Interest in the program is incredible. We’re providing businesses with people faster, but they’re the type of people employers want. The students in this program have the drive and determination to be done quickly.”

Year-Round Campus started this fall with about 100 freshmen expressing interest. Students will focus on courses in their majors during the fall and spring semesters and will take general liberal arts courses in the summer semesters. “The summer semesters will still give them a robust campus experience,” McMahon says. “Campus will still work as usual, but we will make sure there’s flexibility in

the summer.” University of Mary officials tout the program as saving students money, while also increasing their lifetime earnings by entering the workforce sooner.

In Sioux Falls, S.D., University Center brings the state’s six public universities under one roof. “Our primary audience is placebound students who want to go to college or finish a degree, but can’t move and don’t want to do online courses,” says Craig Johnson, executive director. “We provide a site so courses can be completed in person.”

University Center was established as a way to connect public higher education with Sioux Falls and help spur economic development in the area. “We want to do everything we can to provide individuals with the capacity for success and for employers to build the skills of their workforce and have access to the workforce,” Johnson says.

During the recent recession, University Center saw an increase in students as people went back to school. Now, “we’re repositioning ourselves and finding our place in the local job market to provide a new set of offerings,” Johnson says. “We’re working closely with employers to revise the ways we deliver programs. We offer entry and access to education that could lead all the way to a doctorate.”

On the opposite end, Bismarck State College in Bismarck, N.D., has the programs necessary to address the state’s workforce shortage but not the students, says Drake Carter, provost and vice president for academic and student affairs. “We market as best we can and attend job fairs to recruit students and to match students to employers,” Carter says. “We try to direct students toward the industries that are most in need, and our advisers and counselors work with the testing center to help match students with the best kinds of programs for them.”

Mitchell Technical Institute in Mitchell, S.D., has developed a workforce recruitment program to help solve this problem. “It is a program where a company underwrites a portion of a student’s tuition in return for at least two years of employment at the company by the student,” says Mark Gerhardt, vice president of industry relations and development. Gerhardt says the companies either recruit students or choose from MTI’s student body. Any program in any industry is eligible to be part of the workforce recruitment program.

MTI currently has eight programs with an industry sponsor, with the most popular programs to sponsor

being welding and manufacturing technology, architectural design and building construction, electrical construction and maintenance and telecommunications.

“A lot of companies fund scholarships, which we appreciate, but they aren’t guaranteed any payback,” Gerhardt says. “This is a tool to ensure a company gets something for their financial contribution.”

Gerhardt says the program is proving to be “very effective. The earliest companies who have gone through the cycle have ramped it up this year, which speaks to the success and value of the program.”

In the Bakken

University of Mary has added an engineering program, which will be available to students starting in fall 2016, in response to student and industry demand. “It is our most common program request from students and the most common business request from the industry,” says Terry Pilling, assistant professor of mathematics, physics and engineering. “We’re close to where engineers are needed, particularly in the Bakken.”

The program will be offered in collaboration with the University of North Dakota in Grand Forks for any courses students can’t take at Mary. However, the entire degree would be able to be completed on the Mary campus, with the exception of traveling to UND for intensive summer labs.

“We want homegrown engineers who stay in the state,” says David Fleischacker, dean of the School of Arts and Sciences. “Having this program will hopefully keep them here. We also want them to be as successful as possible, so they aren’t just technically capable, but they have the liberal

M State’s mobile welding trailer is outfitted with 12 training stations. The trailer’s instructor can teach the basics of welding, as well as more advanced skills for continuing education. PHOTO: M STATE

arts background so they understand people and can collaborate with their partners.”

Mark Hagerott, North Dakota University System chancellor, has recognized the need to retain the thousands of workers who have moved to North Dakota during the oil boom, and has introduced Bakken U to encourage oil workers to go back to school.

“People are moving out rapidly due to layoffs,” Hagerott says. “We realized we needed to explain there are opportunities for two- and four-year degrees, as well as technical degrees, within an hour of where they are working.”

Right now, in its first phase, Bakken U is an information campaign promoting Williston State, Dickinson State, Minot State, Bismarck State and Dakota College at Bottineau. Hagerott envisions a second phase including scholarships and a “financial bridge” for oil workers and a third phase including an energy program with certification and the opportunity to continue with additional education. “We want North Dakota to become a place for energy workers to stay,” he says. “We want to help meet the workforce needs of the oil industry down the line but also fill the needs of other industries with the right training.”

University of Mary has also increased its presence in the Bakken, setting up an office in Watford City, N.D., to help meet the workforce needs “in that challenging area,” McMahon says. Mary is working with the businesses in that area to help grow and retain the workforce, says Rachael Brash, director of graduate admissions. “We’re here to help them. We understand the business aspects, which is attractive to these businesses.” Graduate programs go year-round, with classes once a week in the evening.

Workforce Training

In 2013, Minnesota West Community and Technical College, which has locations in Detroit Lakes, Fergus Falls, Moorhead and Wadena, created a mobile welding trailer, which travels around the college’s 19-county region. It features 12 welding workstations and can be used year-round. “We decided we need to take education to the students,” says G.L. Tucker, dean of custom training services. “There are a lot of reasons kids aren’t going to college, and we serve a large geographical area. For businesses, it’s more economical to take the training to them.”

Now, thanks to the success of the welding trailer, M State is creating three more trailers — Commercial Driver’s License, construction and safety training and precision measurement. “Any time we can get these labs out, the better we’re serving students that may not be served,” Tucker says. “We can help provide them with a specific skill.”

M State partners with a variety of businesses and organizations to provide 16-160 hours of training. “It depends what we’re doing, but we can provide 160 hours for people who have

never welded or 16 hours for additional or specific welding skills,” Tucker says. “We will work with the business to design custom curriculum to fit their needs.”

Tucker says it’s part of M State’s mission to ensure students and workers in the region have the skills necessary to be successful. “For us, it’s about making sure they can get jobs, but we’re also a conduit to providing skills industry needs. We also see it as a place to provide additional skills to those already working.”

In North Dakota, TrainND was established in 1999 to be the state’s “most comprehensive and inclusive training network,” says Patty Kline, director of TrainND Southeast, located at North Dakota State College of Science in Wahpeton. TrainND also has locations at Lake Region State College in Devils Lake, Williston State College in Williston and Bismarck State College in Bismarck.

In the southeast region, TrainND’s mission is “to provide timely, flexible, innovative, dependable training,” Kline says. “We will provide training at their site, our site or a neutral site.” TrainND Southeast is “actively working on new programs” in response to the region’s workforce needs, Kline says. That includes robotic manufacturing and hydraulic maintenance programs and increasing its CDL training. TrainND also recently launched an on-demand learning program, with more than 800 short video courses that can be completed anywhere and provide technical skills.

“North Dakota needs a highly-trained workforce,” Kline says. “We continue to expand our services and are continually working on new offerings to meet their gaps.”

In TrainND’s southwest region, there is a strong emphasis on training as the oil boom slows down, says Carla Hixson, associate vice president for continuing education, training and innovation at Bismarck State College. “One of the challenges when there’s a large influx of workers is that they didn’t have time to do training,” Hixson says. “Those workers received the bare minimum training. Now, employers are looking at their employees to see how they can enhance their skills. The trend now is how they can upgrade their employees’ skills.” PB

Kayla Prasek Staff Writer Prairie Business 701-780-1187, kprasek@prairiebizmag.com

Building boom

Bismarck State College completes three projects with another underway

BY KAYLA PRASEK

When Bismarck State College students returned to campus this fall, they were welcomed by three completed construction projects — the new Communications and Creative Arts Center, the new Lloyd Ritchie Residence Hall and the renovated Student Union. Construction is also underway on the new Gate City Bank Residence Hall.

Dave Clark, vice president of operations and finance, says the projects were necessary for BSC’s growing student population. “Over the years, we have had a number of new building projects,” Clark says. “Our first major project was in 1998, and the trend has continued, so for the most part we look like a fairly new campus with fairly new buildings. These projects were significant for us and were greatly needed.”

The 40,000-square-foot, $13.5 million Communications and Creative Arts Center was designed by JLG Architects in Bismarck, while Kansas City, Mo.-based JE Dunn served as general contractor. Construction started in May 2014 and was finished this August. The three-story facility, located centrally on campus, features a ground floor learning commons and library, while the second and third floors contain the English and

visual arts programs.

1. The Communications and Creative Arts Center brings the library, high-tech learning commons, visual art program, campus gallery and English classrooms and offices to a central location on campus.

PHOTO: BISMARCK STATE COLLEGE

2. Lloyd Ritchie Residence Hall features 14 two-bedroom apartments and adds 56 beds to campus. PHOTO: BISMARCK STATE COLLEGE

3. Bismarck State College’s Student Union received a complete makeover, with redesigned food services, student gathering areas, two additional meeting rooms, offices for student organizations and a new game room. The bookstore retail operations were also expanded with a coffee bar and convenience store. PHOTO: BISMARCK STATE COLLEGE

“The library was in a different, old building that was demolished as part of this project, while the visual arts program had been in the center of a men’s dormitory,” Clark says. “This facility provides a major improvement for those programs, along with better space for educating and serving students.”

The Student Union project, which was designed by Bismarck-based Ubl Design and was started in 2012, saw 14,000 square feet of new construction and 22,000 square feet of renovated space. The $9 million project, which was done by general contractor Capital City Construction of Bismarck, was completed this July. The Student Union now has redesigned food services and student gathering areas, two additional meeting rooms, offices for student organizations and a new game room. The bookstore retail operations were also expanded with a coffee bar and a convenience store.

“The renovation and addition really transformed the atmosphere in the Student Union,” Clark says. “The students are pleased, and we’re able to serve our growing campus population while also facilitating community functions. As we have a growing population on campus, we needed more space for socialization, dining, bookstore needs and more appealing space. It’s important to have a good environment for our students.”

Ritchie Hall and Gate City Bank Hall are a $5 million project financed and owned by the BSC Foundation. Designed by Ubl Design and constructed by general contractor Performance Contracting Inc. of Lenexa, Kan., construction started on Ritchie Hall in September 2014 and was completed in August. The two-story residence hall features 14 apartment-style suites and common lounge. Each suite includes two bedrooms, two bathrooms, a kitchen, living area and laundry. Construction started on Gate City Bank Hall in March and is expected to be finished in May. The three-story residence hall features 18 apartment-style suites, student life office, resident supervisor apartment and storage space. Together, the two residence halls will add 128 beds to campus.

“These projects provide appealing facilities that are in demand,” Clark says. “We have been losing students because we had very limited on-campus housing, and off-campus housing is very tight. We’re anticipating housing needs in the future, but these projects help us deal with the situation today and give us time to plan for the future.”

While it isn’t unusual for a college campus to have several ongoing projects, it is unusual for three projects to be completed at the same time. “We have had great support in the community, and we had experienced managers in key positions to help guide us through this phase. It was a lot of hard work, but we knew the end result was going to be worth it,” Clark says. PB

Kayla Prasek Staff Writer Prairie Business 701-780-1187, kprasek@prairiebizmag.com

A new normal

Western North Dakota communities use oil downturn to catch up

BY MARNIE LAHTINEN

The recent downturn in oil prices means a ‘new normal’ for western North Dakota, as communities there adjust to a slower pace of life. A barrel of crude is worth roughly half of what it was in June 2014 — the American benchmark is currently around $50 a barrel — and oil companies are adjusting to lower demand and reduced earnings. The industry has slowed exploration and production, and oil workers have lost jobs as companies consolidate and reallocate resources. Yet, despite this turndown, western North Dakota oil-boom cities are maintaining robust job and housing markets while addressing ongoing infrastructure demands.

Domestic crude production in the United States nearly doubled over the past six years and western North Dakota was a major contributor to that growth. In the spring of 2014, North Dakota’s production reached the 1 million barrel per day mark. Record revenues flowed into state coffers and North Dakota enjoyed some of the lowest unemployment rates in the country. The decrease in oil prices over the last year has changed the types and number of job opportunities — but in a surprising way.

“Oil companies are responding to this focused economic event, so there’s been a shift in the types of jobs that are here … and there’s actually more of them,” says Gaylon Baker, executive vice president at Stark Development Corporation in Dickinson. “There are 1,800 job openings in southwest North Dakota right now that need to be filled.”

Now, it is the residual projects of the oil boom which require workers. Williston is relocating its airport to the tune of $254 million. A pipeline project is in the works to transport Bakken crude out of the state to major American refining markets. Cindy Sanford, manager at the Williston branch of Job Service North Dakota, says those two projects alone will require at least 600 laborers.

“We still need truck drivers, mechanics, teachers … almost any other job you can think of,” Sanford says. “Williston is still catching up, the job market is still strong and we have a shortage

The new Dickinson Public Safety Center opened in Dickinson, N.D., in September. The $17 million facility combines the city’s fire and police departments under one roof and was built to address the needs of the growing community. PHOTO: CITY OF DICKINSON FIRE DEPARTMENT

“Willistonisstillcatchingup,the jobmarketisstillstrongand wehaveashortageofskilled people.”

-CindySanford,manager, Job Service North Dakota inWilliston

of skilled people.” In fact, a growing concern is how western North Dakota can retain qualified workers.

Affordable housing is a key component to employee retention. “The apartment vacancy rate is finally at a level where you can get an apartment at a reasonable rate,” Baker says. “A lot of the crowding together has gone away as [transient workers] leave the area …. instead of six to an apartment, we now have two to three in an apartment, and that’s alright.”

Infrastructure needs are acute for western North Dakota communities that quickly and drastically increased in size: Dickinson grew from 18,000 to 28,000 residents in just four years. “Cities out here have analyzed what they can do — and what they should do — and priorities are in order,” Baker says. “The surge funding [from the state] wasn’t enough to address the infrastructure needs we have … so items that are lower on the priority list will not happen.”

“Oil was the catalyst to get people here, and as towns grew with oil production, everything else grew exponentially, too,” says Brett Erdmann, president and CEO of New Leaf Hospitality, which owns and operates hotels in the Bakken. “A lot of costs were inflated … but now businesses and cities have become more efficient at what they’re doing, and how they’re doing it.”

Erdmann admits that while there is some anxiety about the future, it’s the more serious and dedicated businesses — those with a “long-term proposition in the area” — that are sticking around. So while business owners and investors adjust their revenue and income projections, they are also taking this time to get in front of some of the projects they have been working on, Erdmann says. “Those of us who are here for the long term are figuring out how to negotiate the new speed,” he says. “It was 100 miles per hour, now it’s 50 miles per hour. … Let’s find a way to maintain 75 miles per hour.”

“The price of oil will come back gradually,” Baker says.“We’re going to be fine out here … and all of this activity has created (quite) a story.” PB

Marnie Lahtinen Contributing writer marnielahtinen@gmail.com

Drilling Productivity Report Year-over-year summary

Drilling Productivity Report Year-over-year summary

New-well gas production per rig

through September projected

data through September projected production through November

through

Monthly

Indicated monthly change in oil production (Nov vs. Oct)

Indicated monthly change in oil production (Nov vs. Oct)

Indicated monthly change in gas production (Nov vs. Oct)

November-2014

Indicated monthly change in gas production (Nov vs. Oct)

million cubic feet/day

November-2014 November-2015

FordHaynesvilleMarcellusNiobraraPermianUtica

U. S. Energy Information Administration | Drilling Productivity Report

Interest Rates

Employment

Gas Captured/Sold

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

IT’S FLU SEASON