Prairie Business November 2016

PREMIER BUSINESS MAGAZINE OF THE NORTHERN PLAINS | NOVEMBER 2016

cutting-edge classrooms PAGE 28

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INSIDE

DEPARTMENTS

NOVEMBER 2016 VOL 17 ISSUE 11

10 12

EDITOR’S NOTE

THIS REDESIGN IS READY

BY LISA GIBSON

WORKFORCE

WORK ETHIC VS. SKILLS GAP: AN EXPLANATION OF THE CHALLENGE

BY DENNIS BONA

14 ECONOMIC DEVELOPMENT

PUBLIC-PRIVATE PARTNERSHIPS CAN OPTIMIZE HOUSING OPPORTUNITIES

BY ERICA BECK

Colleges and universities are updating their facilities to feature plenty of windows and open areas.

Find out more on page 28

FEATURES 28 33

HIGHER EDUCATION EDUCATION INTEGRATED MODERN LEARNING SPACES ENCOURAGE COLLABORATION

HEALTH CARE DELIVERING HEALTH CARE DIFFERENTLY COMPANIES SERVE EMPLOYEES, FAMILIES THROUGH ONSITE CLINICS

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COLLABORATION

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BUSINESS INSIDER

20 38

PRAIRIE NEWS THE STARTUP LINE

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ON THE COVER Ken Tharp is a second-year student at the University of North Dakota’s School of Medicine & Health Sciences. IMAGE: JESSE TRELSTAD/FORUM NEWS SERVICE

44 48 prairie people VISIT WWW.PRAIRIEBUSINESSMAGAZINE.COM TO SEE THESE AND OTHER NEW HIRES, PROMOTIONS AND AWARD WINNERS IN THE REGION.

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IMPROVING HEALTH CARE FOR CHILDREN

BY GENE HOYME MEETING CHALLENGES, INSPIRING CREATIVITY

NEW HEIGHTS YOUNG UAS COMPANY TAKES ADVANTAGE OF ENTREPRENEURIAL RESOURCES

Generation Next CONNECTIONS ARE CRUCIAL UNIVERSITY OF MARY JUNIOR PREPARES FOR THE FUTURE, BUT ENJOYS THE PRESENT

INSIGHTS & INTUITION

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DR. DAVID F. SCHMITZ WAS HIRED AS CHAIR OF THE DEPARTMENT OF FAMILY AND COMMUNITY MEDICINE AT THE UNIVERSITY OF NORTH DAKOTA SCHOOL OF MEDICINE & HEALTH SCIENCES IN GRAND FORKS.

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NOVEMBER 2016 VOL 17 ISSUE 11

This Redesign

is Ready P

rairie Business has a new style.

You noticed the cover and the logo are different — and I’m glad you still cracked it open, even if you didn’t recognize us and thought you’d been subscribed to some publication you’ve never heard of called PB. We’re proud of this new look. We’ve been working on it for months and are eager to unveil it. We’ve revamped how we deliver news, too. You’ll still find Business Insider, Prairie News and the main feature stories in these pages, but we’ve added The Startup Line, which features new companies and their entrepreneurial founders; Generation Next, which focuses on up-and-coming successful college students; and Insights & Intuition, where we pose the same question to five or six different people.

And there’s more. New sections will keep coming in the next few issues so stay tuned.

I’m glad it’s finally here. It was a lot of work but this redesign is ready and I think it was worth the wait. But I might be a little biased. PB

PUBLISHER KORRIE WENZEL AD DIRECTOR STACI LORD EDITOR LISA GIBSON STAFF WRITER KAYLA PRASEK CIRCULATION MANAGER BETH BOHLMAN LAYOUT DESIGN, AD DESIGN CARLI GRENINGER KRIS WOLFF ACCOUNT MANAGERS NICHOLE ERTMAN

800.477.6572 ext. 1162 nertman@prairiebusinessmagazine.com

GARRETT RICHIE

248.202.8955 grichie@prairiebusinessmagazine.com

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. 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.

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ADDRESS CORRECTIONS Prairie Business magazine Box 6008 Grand Forks, ND 58206-6008 Beth Bohlman:

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workforce NOVEMBER 2016 VOL 17 ISSUE 11

Work Ethic Skills Gap: vs.

An Explanation of the Challenge BY dENNIS BONA

H

Dennis Bona

PRESIDENT, NORTHLAND COMMUNITY & TECHNICAL COLLEGE EAST GRAND FORKS, MINN. DENNIS.BONA@NORTHLANDCOLLEGE.EDU

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aving worked on the front lines of workforce development for the past 35 years, I’m delighted to have the opportunity to weigh in on what has become a routine debate among business leaders and educators over the most difficult challenges we face regarding our current workforce.

The most common frame is that workers are often characterized by employers in three ways. The first assertion is that today’s workers are simply lacking the skills required for the complex tasks associated with a contemporary high-tech work environment.

When pressed for more specifics by educators, who are often flagged as the root cause for workers lacking skills, employers will typically identify skills more closely associated with work ethic. So the second assertion is that employers can’t find employees who are dependable, punctual, follow direction, exert reasonable effort or demonstrate loyalty. Unfortunately, the third and most difficult assertion to deal with is issues of substance abuse, criminal history, illiteracy and mental health. The more enlightened realize that the latter of the three assertions has a root cause based in societal issues and will require solutions that employ a strategy that “takes a village, and then some...”

So the rest of my commentary will focus on the first two, which in my analysis are complex, intertwined, misunderstood and often misdiagnosed. I must also qualify my remarks with the admission that I have no

coming to

prairie business january 2017 law

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We invite your business to participate in this edition with an advertisement focused on your law practice, areas of specialty or the team that makes your practice successful.

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scientific data or research to back up my analysis. Everything I conclude is based solely on conducting hundreds of advisory meetings, employer interviews, faculty and program evaluations. I have also experienced countless interactions with students, many of whom are incumbent workers, who were more than willing to express the challenges they face on a daily basis at school and work.

Enough background, here’s the point.

All of the descriptors mentioned in the first two assertions are made with varying degrees of intensity and I’ve noticed it to be directly proportional to how progressive the employer is with respect to his or her effectiveness in managing the workforce. Perhaps it’s simply common sense to propose that employees respond to management excellence with higher levels of skill and work ethic, but my experience suggests it’s true. I’ll go further and say that the very same is true for students in the classroom, and for that I do have the scientific evidence to support my theory. It’s routinely proven that great teachers produce amazing students. Continuing with that premise, great employers don’t face the same level of concerns with work ethics and skills gaps that marginal employers face.

My comments are not meant to suggest that education should be off the hook, nor do I deny the challenges associated with our current workforce. We are working diligently in all of education to increase student learning, particularly in the cognitive areas of problem solving, creativity, communication and decision making — all areas that legitimately need more attention, focused on developing lifelong learners that have the capacity to evolve with the needs of business and industry, both technically and interpersonally.

Education definitely has a major role in combating the challenges of today’s workforce and I respectfully request employers recognize that they must contribute as well. We will not be successful in developing strategies that advance the workforce of the future without both entities first admitting where they fall down, then working together to achieve the desired outcome. PB

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ECONOMICDEVELOPMENT NOVEMBER 2016 VOL 17 ISSUE 11

Public-private

partnerships can optimize housing opportunities

By Erica Beck

YOU CAN GROW THE JOBS AND ATTRACT THE WORKERS, BUT THEY STILL NEED A PLACE TO LIVE. AND IDEALLY, THEY NEED A RANGE OF QUALITY OPTIONS AND PRICES.

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hriving communities typically share many of the same building blocks.

There’s quality infrastructure, including a road network and utilities with the capacity for growth. There’s long-range planning, designed to guide development and capital investments. And there’s a strategic, ongoing approach to cultivating a labor force with skills to match targeted industries.

But even with all those ingredients, a city still must offer enough variety in its housing to support a wide range of demographics and lifestyles.

You can grow the jobs and attract the workers, but they still need a place to live. And ideally, they need a range of quality options and prices.

That’s where the public and private sectors must collaborate to achieve the highest level of development for residents.

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Erica Beck

VICE PRESIDENT OF DEVELOPMENT LLOYD COS. SIOUX FALLS, S.D. ERICA@LLOYDCOMPANIES.COM

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ECONOMIC DEVELOPMENT

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This message resonated for me recently as I put a shovel in the ground in Sergeant Bluff, Iowa, for Lloyd Cos.’ newest development, The Riverbend.

This phased townhome project ultimately will bring more than 150 units to an area acutely in need of housing.

“Right now, if you want to rent something in Sergeant Bluff, I do not think you can at all,” Mayor Jon Winkle told us. “We’re out of residential lots, we are out of apartments, and we’ve never had a lot of apartments. So I think this will fill that need perfectly.”

Sergeant Bluff and the surrounding Sioux City metro have the fortune of being a growing employment center but have the challenge of keeping pace with needed housing.

The city and state were willing partners with our company in the project, assisting with transportation improvements from access to technology.

Their commitment to helping improve traffic flow as the area grows allowed us to mitigate residents’ concerns and ultimately will result in improved quality of life for all in the area.

That’s just one example of how the public and private sectors can work together to encourage economic development through housing.

Each community’s situation is unique, but the results of residential investment are uniformly worthwhile.

The National Association of Home Builders estimates the

one-year economic impact of building 100 multifamily units is: $11.7 million in local income. $2.2 million in taxes and other revenue for local governments.

161 local jobs.

Those figures include direct and indirect impact of the construction activity associated with the project as well as the residents who live there.

But the ongoing annual impacts are certainly worth noting too. Those same units adjusted for natural vacancy rates are estimated to generate: $2.6 million in local income. $503,000 in taxes and other revenue for local governments.

44 local jobs.

It’s hard to think of many other investments that generate such a strong, ongoing return both directly and indirectly for communities.

I encourage our region’s elected leaders and local officials to consider what creative partnerships might be formed to strengthen housing stock. The living areas created will be a vital resource and a competitive advantage to those jurisdictions that choose to take this approach. PB

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COllaboration NOVEMBER 2016 VOL 17 ISSUE 11

Improving Health Care

for Children T

Gene Hoyme

MEDICAL DIRECTOR, SANFORD CHILDREN’S GENOMIC MEDICINE CONSORTIUM SIOUX FALLS, S.D. NORMA.EIE@SANFORDHEALTH.ORG

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By GENE HOYME

o say that we live in an exciting time in medicine is an understatement. Through our growing knowledge of the human genome, genomic medicine has taken center stage on the health care scene. By using information from each individual’s genetic blueprint, we are able to develop care plans that are both personalized and precise.

Sanford Health’s own precision medicine program, Imagenetics, was the first of its kind to integrate genetic information into primary care for adults. This allows physicians to better assess a person’s risks for both rare and common diseases, thereby allowing for more accurate health supervision. But the driving force behind the Sanford Imagenetics program was determined to do more.

Denny Sanford has not only been an advocate for helping change the face of medicine but, through several generous donations, he has also been a catalyst for that change. Like many of us in the medical field, children have always held a special spot in Sanford’s heart. It was his vision and desire to improve the health care of our youngest patients that inspired the recently announced Sanford Children’s Genomic Medicine Consortium.

This collaborative group comprises prominent children’s hospitals from across the country. As equal partners, our goal is to embed genetics and

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genomics into pediatric primary and subspecialty care. The six founding members include: Sanford Children’s, Sioux Falls and Fargo; Children’s Hospitals and Clinics of Minnesota, Minneapolis; Children’s Hospital of Colorado, Denver; Banner Children’s at Diamond Children’s Medical Center, Tucson, Ariz.; Rady Children’s Hospital, San Diego; and Children’s Hospital of Los Angeles. However, it is anticipated that this initial group will rapidly grow. Even at this early stage, we have received several requests from other major children’s hospitals asking to join us in this endeavor.

As this collaboration began to take shape, we wanted to ensure it would check all the boxes of the Sanford Children’s CARE model: Clinical innovation, Advocacy for our patients, Research and Education of the regional and national genetic and genomic health care workforce. The Sanford Children’s Genomic Medicine Consortium is an amazing chance to explore and develop ideas in all of these areas.

One of the first projects we are evaluating is using genetic and genomic information to ameliorate or cure some of the serious problems that occur in both full-term newborns and premature babies. With the help of rapid whole genome sequencing, we can achieve prompt diagnosis of life-threatening conditions and gain

COLLABORATION insight into potential lifesaving treatments.The partner children’s hospitals also hope to test an innovative cancer genetics panel, custom-tailored to evaluate tumors in children. By assessing the genetic signatures of individual children’s tumors, improved survival rates and treatment with fewer side effects are anticipated.

We are also excited to ramp up educational opportunities for those seeking careers in genomic medicine. In Sioux Falls, S.D., Sanford has already partnered with Augustana University to start a graduate program for genetic counselors, the first of its kind in the region. Now we hope to take this program model, and others being developed, to our consortium partners, thereby developing similar programs in the cities of the other founding members.

The consortium also has a national advisory board comprising representatives from industry leaders, including the American Academy of Pediatrics and the National Human Genome Research Institute, among others. This will guarantee that we are on the right track scientifically and are pursuing goals that truly will have a positive impact on the health of children.

I am very excited about leading this unique collaboration. Many times health organizations work in silos; however, the Sanford Children’s Genomic Medicine Consortium seeks to pool the collective knowledge and resources of the members to create an environment that will produce results faster than any one organization could have accomplished alone. PB

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BUSINESSINSIDER NOVEMBER 2016 VOL 17 ISSUE 11

Meeting Challenges,

Inspiring Creativity IMAGE: JACKIE LORENTZ/UNIVERSITY OF NORTH DAKOTA

Mark Kennedy is president of the University of North Dakota in Grand Forks. After a 25year business career with Pillsbury, Accenture and what now is called Macy’s, along with three terms in the U.S. Congress, he set out to explore academia. After various roles at universities across the country, he was recruited to lead the Graduate School of Political Management at George Washington University, before UND’s presidency drew his attention, a role he took over July 1.

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WAYS ARE LEADING A BUSINESS Q. INANDWHATLEADING A UNIVERSITY SIMILAR? A.

While there are similarities between business and academia in

leading a team toward the achievement of shared goals, the mission of a university is much more varied and more focused on the longer term.

Many business people would question the need for gaining wide input on decisions and taking the time to consider every alternative. In that academia is not a command and control environment, insufficient collaboration can easily backfire. That is why I have sought to engage broad-based committees in defining our overall strategy, in charting a path for our athletic programs, and setting a course for becoming a more inclusive and welcoming campus. I will make decisions, but only once others have had a chance to provide their insights.

Q. WHAT ARE YOUR GOALS FOR THE UNIVERSITY? A.

It is gratifying to see the strategic planning process embracing my goal to have UND be the chief opportunity engine for North Dakota by being the premier flagship university in the region. This requires UND to combine a strong liberal arts base for our undergraduate education with research-infused teaching. It also means that we provide research and creative content that enhances the economic and social vitality of the state and nation. This can only be accomplished with a campus environment that is open to vigorous debate on the important issues of the day, while being inclusive and welcoming to all.

ARE SOME OF THE LARGEST CHALLENGES Q. WHAT YOU ANTICIPATE LEADING UND THROUGH? A.

While we have several new beautiful buildings on campus, the average age of our buildings is 50 years old and the amount of deferred maintenance is staggering. Only by focusing on those buildings essential to our mission, while removing, disposing or engaging in public-private partnerships with the remaining buildings, will UND be able to return to a physical campus that contributes to attracting the best talent.

Similarly, while UND has standout programs in every college, as well as national prominence in health care, energy, aviation and unmanned aircraft systems research, some programs have not been as diligent with staying at the cutting edge in research and scholarship or attracting new students. Priority must be given to sustaining areas of strength and investing in fields with strong demand.

DOES A TYPICAL WORK Q. WHAT DAY ENTAIL FOR YOU? A. My typical work day begins with catching up on the day’s news and urgent emails at my kitchen table around 6 a.m. and getting to my office or first meeting around 7:30 a.m. with few, if any, gaps between events that more often than not extend into the evening hours.

I have been meeting with the various faculty and staff departments to get up to speed with the many good activities in which UND is engaged. As we are now pressing forward to complete a strategic plan and advance many strategic imperatives, other meetings involve updates on progress and decisions of the path forward.

Q. A.

HOW CAN UND AND BUSINESSES IN THE REGION WORK TOGETHER TO EASE THE WORKFORCE SHORTAGE? IS UND WORKING WITH ANY ORGANIZATIONS CURRENTLY FOR THAT PURPOSE? The state-funded Healthcare Workforce Initiative authorized an increase in the number of medical doctors and other health care professionals that we educate. We work closely with health care practitioners throughout the state to address workforce needs. This and UND’s recent addition of a petroleum engineering degree supported by industry and governmental partners are examples of how with increased support UND can deliver the skilled workers the state needs.

Our UAS programs, both in terms of educating students and in engaging in research, provide another example of how we are working with a variety of partners to help build from the ground up a brand new industry for North Dakota.

On a local level, UND and the City of Grand Forks has cooperated on a city-wide internship program to help students test the job opportunities within the city. In addition, UND is engaging with the Grand Forks Economic Development Authority’s workforce study and we will be diligent in adjusting as much as possible to meet identified needs.

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PRAIRIENEWS NOVEMBER 2016 VOL 17 ISSUE 11

SD Mines receives grants for program to support female engineers

South Dakota School of Mines & Technology Faculty.

From left: Shaobo Huang, Department of Mechanical Engineering; Jennifer Benning, Department of Civil & Environmental Engineering; Cassandra Degen, Department of Mechanical Engineering; Paula Jensen, Department of Industrial Engineering; Kelli McCormick, Department of Mining Engineering & Management; Michael West, Department of Materials & Metallurgical Engineering; Jon Kellar, Department of Materials & Metallurgical Engineering; Andrea Brickey, Department of Mining Engineering & Management.

IMAGE: SOUTH DAKOTA SCHOOL OF MINES & TECHNOLOGY

prairie business staff report

The nation needs more engineers, and women are still underrepresented

in the profession.

–HEATHER WILSON

PRESIDENT SOUTH DAKOTA SCHOOL OF MINES & TECHNOLOGY

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he South Dakota School of Mines & Technology in Rapid City has received $1.1 million from the National Science Foundation and John T. Vucurevich Foundation for its Culture & Attitude Program.

The program aims to attract, retain and graduate more women and underrepresented students in engineering through scholarships, industry mentors, professional development and new curriculum that engages diverse learning styles, according to a news release. The Culture & Attitude Program will also partner with local nonprofits, the city of Rapid City and the Native American Sustainable Housing Initiative to incorporate service learning into the classroom.

“The nation needs more engineers, and women are

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still underrepresented in the profession,” says Heather Wilson, president of the School of Mines, in a statement. “This grant will help us look at learning styles and how to be more effective in our teaching.”

The grants also will enable SD Mines to evaluate its curriculum to ensure it is preparing engineers with different learning styles and problem-solving strengths. “The traditional engineering curriculum may not engage students of different learning styles. The NSF award contains funding for faculty and curriculum development to change the curriculum to better engage underrepresented groups, particularly women, in engineering,” says Michael West, principal investigator and chair of the Department of Materials & Metallurgical Engineering, in a statement.

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The grants will support underrepresented students in the five engineering departments that make up the Culture & Attitude team — civil, industrial, mechanical, metallurgical and mining. In collaboration with these departments, the Culture & Attitude Program will launch new curriculum with experiential, service and creative learning components to better retain students who are creative, empathetic and organizational in addition to analytical.

To evaluate success, the entering freshman class will be administered a survey annually to track both retention of women and student diversity.

“The goal of this program is to change the culture of engineering,” says Paula Jensen, who manages the Culture & Attitude Program and is a lecturer in the Department of Industrial Engineering.

“These young women are catalysts to make this happen. Mentoring, professional development, networking, academic support, and technical and team-building activities, like welding, machining, rock climbing or archery, empowers them to succeed in an industrial setting.” PB

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PRAIRIENEWS NOVEMBER 2016 VOL 17 ISSUE 11

Northland technical college partners with Northrop Grumman

Northrop Grumman is building a new 36,000-square-foot facility at Grand Sky Unmanned Aerial Systems Business and Aviation Park near Grand Forks, which is about 50 miles southwest of Northland Community & Technical College in Thief River Falls, Minn.

IMAGE: JESSE TRELSTAD/FORUM NEWS SERVICE

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orthrop Grumman Corp., a worldwide unmanned aerial systems (UAS) company, will donate the use of its Bat Unmanned Aircraft System and associated equipment to Northland Community & Technical College in Thief River Falls, Minn.

Bat, a medium-altitude, multi-mission UAS that is runway independent and fully autonomous, will be used to train students on UAS maintenance and repair.

Along with the craft, NCTC will have access to flight control and launch and recovery elements. The college’s newly remodeled, 18,760-square-foot aerospace site features labs that focus on non-metallic structure and composites, electronics and avionics, according to NCTC. A new hangar also has been added, designed with special considerations for housing and operating UAS such as the Bat. NCTC’s program teaches students UAS components, including the systems themselves, ground control stations, communication and

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guidance systems, and basic understanding of computer networks and their relationships within the UAS, according to NCTC. Northrop Grumman is building a new 36,000-square-foot facility at Grand Sky Unmanned Aerial Systems Business and Aviation Park near Grand Forks, which is about 50 miles southwest of Thief River Falls. The facility will support research and development, aircrew and maintenance training, operations and mission analysis, and aircraft maintenance in the region.

“Northrop Grumman has been a friend and partner to NCTC since we started working in the UAS industry,” says Curtis Zoller, associate dean of aerospace and agriculture at NCTC, in a statement. “The Bat UAS collaboration represents another firm example of ongoing commitments to find innovative solutions to training today’s workforce. Northland Aerospace will integrate the system into our current training programs in order to offer the most

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advanced training possible to our students.

Investments made by NCTC and partners like Northrop Grumman in infrastructure and technology over the past years have all been focused on advanced student education. It is all about the students.”

Rick Crooks, director of advanced systems for Northrop Grumman Autonomous Systems, says in a statement, “Northrop Grumman is pleased to make the Bat system and its support equipment available to enhance UAS training at Northland Community Technical College. NCTC is a leader in producing aviation mechanics and technicians, and we’ve already hired several of their graduates. Our collaboration reflects the commitment we made in 2013 to this area and to the advancement of UAS technologies through the Red River Valley Strategic Alliance Agreement. The Red River Valley is fast becoming a key center for unmanned aircraft systems and we’re proud to support its growth.” PB

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PRAIRIENEWS NOVEMBER 2016 VOL 17 ISSUE 11

By Kayla Prasek

Health savings accounts

grow in popularity

A

Phyllis Cuttino, director of the Clean Energy Initiative at The Pew Charitable Trusts, speaks about the future of clean energy in North Dakota at the Great Plains & EmPower ND Energy Conference Oct. 11 in Bismarck. IMAGE: DUSTIN WHITE/BISMARCK STATE COLLEGE

North Dakota looks to the future with clean energy

E

BY KAYLA PRASEK

xperts from all corners of the energy industry convened in Bismarck, N.D., Oct. 11 for the Great Plains & EmPower ND Energy Conference. While much of the discussion centered around oil, Phyllis Cuttino, director of the Clean Energy Initiative at The Pew Charitable Trusts, spoke about the future of clean energy in North Dakota.

Cuttino said clean energy will account for 60 percent of new energy by 2020. Wind and solar will be the cheapest ways to generate energy in most countries by 2020 and in all countries by 2030, she said.

“The reality is clean energy is growing rapidly worldwide. …

It’s being driven by a number of things,” Cuttino said.

Electric and autonomous vehicles are also on the radar, she said. “Electric vehicles may not be very popular here (in North Dakota), but they’re incredibly popular in more populated places. States are also looking ahead to autonomous vehicles and are racing to get policies in place for them.”

Wind turbines saw the largest growth in the energy industry in 2015, Cuttino said. She added that nearly one-third of all U.S. power was generated from gas that year and $56 billion was invested in all energy, with solar receiving the most funding.

The wind sector is promising for North Dakota, as well, Cuttino said. The state is expected to add 1,800 megawatts and generate $2.9 billion in investments in wind power by 2023.

“Every state wishes they could be North Dakota,” Cuttino told conference attendees. “You have worked hard to have policy in place and have really supported these efforts.” PB

LAROCK

HURLEY

KAYLA PRASEK

Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

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s the average family health insurance premium has increased by 58 percent since 2006, the growing trend in health insurance has been consumer-driven health plans with health savings accounts, said Suzie Hurley, vice president of group benefits at SilverStone Group.

A health savings account (HSA) is a savings account used in conjunction with a high-deductible health insurance policy that allows users to save money tax-free against medical expenses.

“It’s a powerful tool and there’s really nothing else like it out there,” said Dan LaRock, principal at SilverStone Group, which is headquartered in Omaha, Neb., and has a location in Sioux Falls, S.D. LaRock and Hurley discussed HSAs during the SilverStone Group Strategy Series Sept. 29 in Fargo.

HSAs can only be set up in combination with a qualified highdeductible health plan, with a minimum deductible of $1,300 for an individual and $2,600 for a family. “Though the deductible is higher, typically the employee’s monthly premium is lower,” Hurley said. “Generally, the employer helps fund the HSA to help the employee pay for their health care.”

While there is a yearly limit on the amount of money that can be put into the HSA — in 2016, the limit is $3,350 for an individual and $6,750 for a family — there is no limit on the account’s accumulation, Hurley said. “Unspent balances remain in the account until spent. There are no rules about if you don’t use it, you lose it. If the employee leaves your company, that money goes with them because it is a regular bank account.”

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Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

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The high-deductible health plan cannot have office visit or prescription copays and typically includes all preventive services, Hurley said. The whole family also must meet the entire deductible or out-of-pocket maximum before any member of the family will have benefits paid out.

About 150 million Americans are covered by group health plans, and within that, there are 18.2 million active HSA accounts, LaRock said. National HSA assets grew $7 billion in the past year to exceed $34 billion.

“Health plans remain the largest driver of growth,” LaRock said. “More people are being introduced to this concept because of health plans. About 150 million get their insurance from their employer. Thirty-seven percent of new accounts come from health plans. The average investment account holder has a $15,092 total balance. That’s buying power. They don’t want to spend that, and they’re going to do everything they can to not have to spend it.”

The current estimate from Devenir, a leading independent investment adviser and consultant in the HSA industry, is that by the end of 2018, the HSA market will approach $50 billion in assets covering more than 27 million accounts, LaRock said.

Hurley said that half of SilverStone’s more than 700 clients have a consumer driven health plan with an HSA. “The lowest possible cost tier for employers and employees is a savings plan,” she said. PB

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Complete the graduate school application at MinotStateU.edu/graduate. We invite you to visit with an advisor by calling 701-858-3413 or 800-777-0750, ext. 3413.

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PRAIRIENEWS NOVEMBER 2016 VOL 17 ISSUE 11

Avera’s new cancer center in Pierre, S.D., will be called the Helmsley Center.

IMAGE: AVERA HEALTH

Avera to build cancer center

NORTH universities launch of state’s

in Pierre, South Dakota A T

By Lisa Gibson

vera Health will build a new cancer center in

Pierre, S.D., using up to $10 million in grant funding from the Leona M. and Harry B.

Helmsley Charitable Trust, an organization with

locations in New York City and Sioux Falls that supports rural health care.

The Pierre facility will be named the Helmsley Center and will provide cancer care, along with space for primary and specialty care, according to Avera. The Helmsley Charitable Trust will donate $7.5 million toward construction of the new facility, a linear accelerator for radiation treatment, specialized infusion chairs and a robot that delivers medications including chemotherapy. The trust also will donate up to $2.5 million in matching funds. Avera St. Mary’s Foundation will lead a fundraising campaign in 15 counties in central South Dakota to meet the $2.5 million challenge through donations from individuals, families and businesses.

Construction on the Helmsley Center will begin next summer and the facility is expected to be up and running in fall 2018. The center will add upwards of $1 million in salaries to the community, according to Jay Gravholt, director of media relations for Avera Health. “In addition to adding $1 million in salaries and benefits annually, the project will have local subcontractors and will add economically to the region during the construction process,” Gravholt

through lodging, food and gas purchases. This is, of course, just the tip of the iceberg.”

The facility has been named the Helmsley Center to show appreciation for the support and funding, Gravholt says. “Avera wanted to thank them for not only this project, but for all they have done for people in rural South Dakota when it comes to health care,” he says. “Naming the new facility in Pierre the Helmsley Center was the right thing to do for a partnership of this size and scope.”

Residents and Avera stakeholders in and near Pierre identified cancer care as one of the three prominent needs in the 2016 Community Health Assessment conducted by Avera St. Mary’s, alongside chronic conditions associated with obesity and mental health.

“The Helmsley Charitable Trust has made a distinct commitment to strengthen health care in rural locations, and improved cancer care is a welldocumented need in the Pierre area,” says Walter Panzirer, Trustee for the Helmsley Charitable Trust.

“Pierre is unique in that it is our state capital and an important city in our state, and yet its geographical location isolates it from more populated areas by hundreds of miles. We see bringing a cutting-edge cancer center to Pierre as a very worthy project that will help improve the future health of this community and the surrounding area. We are excited to see this project take shape.” PB

tells Prairie Business. “Down the road, Avera expects to see patients from all over the central South Dakota region adding additional revenue to the community

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LISA GIBSON

Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

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By Kayla Prasek

he University of North Dakota and North Dakota State University are collaborating on a project that will become the state’s first spacecraft.

Students and faculty from the two universities’ computer engineering, computer science, electrical engineering and mechanical engineering departments, among others, are working together to complete and test the CubeSat spacecraft. The OpenOrbiter Small Spacecraft Development Initiative at UND is expecting to launch the CubeSat in December.

“The program is a tremendous opportunity for students at both schools,” says Jeremy Straub, an assistant professor at NDSU who also launched and directed the program at UND. “As part of the program, students from numerous areas of both campuses have been involved in everything from designing and building the satellite to considering the impact of small satellites on national space policy.”

The CubeSat also will demonstrate the ability to make a

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This is one of two versions of OpenOrbiter 1, a cube-shaped satellite being developed by students from NDSU and UND. IMAGE: UND

PB

Gate City invests in Dakota collaborate on first spacecraft functional spacecraft for only a few thousand dollars, instead of tens or hundreds of thousands of dollars, according to the program’s mission statement.

The ultimate goal is to create two completely functional spacecrafts that will serve as backups for each other. This provides the group with the potential of swapping out parts from the other for use in the satellite that will be provided to NASA to launch later this year, Straub says.

The other satellite also will be launched, but at a later date.

Students collaborate via inperson meetings as well as by phone, text message, email and video chat. “It provides an experience with a bigger group of coworkers,” says Bradley Biorn, an undergraduate student at UND and program spokesman.

“This helps us to learn how to communicate effectively and work with large groups without having coordination-related errors.” PB KAYLA PRASEK

Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

Employees at Gate City Bank’s Wahpeton, N.D., location hold a check for $1 million to be invested in the city’s Home Improvement Partnership Program.

IMAGE: GATE CITY BANK

housing improvement program

G

By Lisa Gibson

ate City Bank’s Wahpeton, N.D., location will invest $1 million in Wahpeton’s Home Improvement Partnership Program, in addition to the $750,000 the bank already has contributed.

HIPP is designed to encourage preservation of Wahpeton’s existing housing market by providing lowinterest loans to homeowners for major home improvement projects. Wahpeton homeowners of owner-occupied single family residences can apply for a HIPP loan for projects including those that correct health and safety code deficiencies, structural improvements, weatherization and energy efficiency, accessibility, and general home improvements that preserve the integrity of the house and add to the long-term value and life of the property and neighborhood, according to Gate City.

The investment from Gate City into similar programs aimed at housing market stabilization began in FargoMoorhead, says Kevin Hanson, Gate City’s executive vice president and director of lending. The market in some neighborhoods was shifting to rentals

from ownership, which made some young families look elsewhere for homes to purchase, and that caused issues in school districts, Hanson explains.

HIPP and similar programs encourage functional improvements to rehabilitate homes and “get families back into those neighborhoods,” he says. “If your neighbor fixes up his house, it gives you an incentive to fix up your own.”

Jane Priebe, economic development director for the City of Wahpeton, says in a statement: “We are very excited to partner with Gate City Bank again on the Home Improvement Partnership Program. With ... the city’s efforts on addressing deferred maintenance issues, now is the time for individuals to invest in their properties.”

Gate City wanted to be active in finding a way to help solve the housing market problem and determined HIPP was able to make a difference, Hanson says. “As a community bank, we believe in giving back to our customers and communities.” PB LISA GIBSON

Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

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Educat on ntegrated

The view from the main lobby of the new School of Medicine & Health Sciences building at the University of North Dakota in Grand Forks. The school’s design emphasizes glass and open learning spaces.

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IMAGE: JESSE TRELSTAD/FORUM NEWS SERVICE

HIGHER EDUCATION

Looking down from the fourth floor of the faculty/staff side of UND’s med school building.

Different areas of the building are color coded — faculty/staff areas are orange, research is blue and student areas are yellow.

IMAGE: JESSE TRELSTAD/FORUM NEWS SERVICE

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TRENDS IN MODERN LEARNING SPACES AT UNIVERSITIES ARE MOVING TOWARD COLLABORATION, HIGH-TECH CLASSROOMS AND DESIGNS WITH PLENTY OF GLASS

O

nly a couple months into the school year, second-year medical student Ken Tharp can see how the new University of North Dakota School of Medicine & Health Sciences will shape generations of students to come.

The new medical school is a towering structure made almost entirely of glass, both inside and out, and is designed to encourage collaboration between students and faculty from all departments.

“All the programs are integrated together in the new building,” Tharp says. “In the old medical school, medical students had a little corner in the basement just for us. We had no interaction with students from other disciplines. Now we have private study learning spaces that are integrated.”

State of the Art UND’s new medical school in Grand Forks, which opened this fall, is a direct result of the state’s Healthcare Workforce Initiative, says Dr. Joshua

By KAYLA PRASEK Wynne, vice president for health affairs and dean of the School of Medicine & Health Sciences. The school has four goals — prevent disease and reduce disease burden, retain graduates, train more health care professionals, and increase efficiency.

Wynne says this building helps meet several of those goals. “We have increased class sizes by 25 percent, and we’re trying to positively influence efficiency of health care delivery in interprofessional teams,” Wynne says.

“The old building couldn’t accommodate new people and it wasn’t conducive to this type of education. You can’t teach interprofessionalism if some of the departments aren’t even in the same building.”

The 325,000-square-foot, four-story building was designed with the concepts of collaboration, coordination and interprofessionalism, Wynne says. “We worked to have everyone sharing space.

In the old building, each department had its own space. We really emphasized the team approach and minimized owned space while maximizing shared space.

We also designed open lab space rather than dividing the labs into small cubicles.”

In addition to the shared departmental spaces, the school has eight learning communities, where students from different parts of health care live together professionally. Students in each learning community share a common lounge space, name their communities and write rules for how they engage.

“We think we’re the first to do this, but we think it’s the model for the future,” Wynne says. “We’ve been teaching interprofessionalism for years, but it felt added on since no one was integrated.

With the new building, we were able to take it to the next level.”

The building is also fully wired and extremely high-tech, as Wynne says administrators and faculty “wanted to build for the future. We tried to make everything as adaptable as possible.”

Not every classroom is high-tech; rather, classrooms were designed with different levels of technology support and administrators will pair classes with the right level of technology.

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“For example, a small group reading medical literature doesn’t need a hightech lecture hall,” Wynne says. “That class would fit better in a small group room with lounge chairs.”

Glass walls, collaborative learning spaces and the newest technology create an environment that helps students learn better, Wynne says.

“Studies have shown that environment improves learning. Being in an airy, collaborative building engenders that collaborative feeling but designing the building for it fosters collaboration in our students, and it will pay off in their care in the future.”

From a student’s viewpoint, Tharp says health care is moving to an entirely collaborative environment, and UND’s new medical school is ahead of that trend. “Evaluation of the health care model shows the current model is not the best for patients. Care needs to be provided in a more roundtable setting with all the care providers’ perspectives at the table. This building is emulating that model, which will help us provide better patient outcomes and be able to foster a better work environment.”

‘Ideas in Motion’ Concordia College in Moorhead, Minn.,

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is in the process of renovating two existing adjoining facilities to create a building for its Division of Sciences and Mathematics with similar goals as the UND medical school. The ongoing science facility project also will serve the school’s nursing and dietetics programs.

“We say science is ‘ideas in motion,’ and we wanted to capture that active learning, research and clinicals,” says Ellen Aho, professor of biology and faculty liaison for the science facility project. “There are lots of spaces for that, including labs and informal spaces.

This is no longer a time when scientists don’t speak to each other.”

While there are dedicated labs for research and teaching, Concordia’s science facility will also feature T-search rooms, spaces for both research and teaching. “A professor might teach a class in there during the day, but at night a researcher might come in and work on his project, which is something we never would have done before,” Aho says.

“That used to all be very separated.”

The goal was to make the most of each space in the building. “Some spaces are in heavy demand at different times,” Aho says. “For example, a

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classroom is probably only being used during the day, while research labs are more heavily in use in the evenings and summers. So we designed these hybrid spaces, which are an innovative part of the design.”

The building design also features a lot of glass. “You’ll walk into the building and have a visceral sense of ‘ideas in motion,’” Aho says. “You’ll be looking into the labs and classrooms.

It’s a central principle to support collaboration.”

The design has one larger lecture hall that is still a collaborative room with two rows of chairs on each tier that students can turn around to work together. All other classrooms are flexible rooms so professors can encourage collaboration.

The science departments also are working to integrate lecture and lab, so the facility will have teaching labs, where professors can lecture and then students can immediately do a lab about what they’ve just learned, Aho says.

“The way science is done is as a collaborative activity,” Aho says.

“Concordia has a commitment to hands-on lab work. This building is an intentional move to how we want to teach science now and in the future.”

HIGHER EDUCATION

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ABOVE: The Wellness Center at the University of South Dakota is an example of the modern architecture and steel and glass buildings that are transforming the campus.

TOP RIGHT: USD’s business school features a variety of study spaces throughout the building to encourage students to stay in the facility and collaborate with each other.

RIGHT: USD’s Lee Medicine & Science building features winding staircases, an open atrium and floor-to-ceiling glass, all helping to encourage collaboration.

BELOW: A collaborative space inside Beacom Hall, home to the University of South Dakota’s Beacom School of Business.

IMAGES: UNIVERSITY OF SOUTH DAKOTA

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The building isn’t as high-tech as UND’s medical school, but a few classrooms can be used for distance learning, and the labs are designed for maximum flexibility and instructional technology, Aho says.

The environment the new facility will provide “is critical, in the sciences especially,” Aho says. “We’re dealing with both ideas and physical stuff, so to have a space that supports that is essential.”

The science facility will be the newest building at Concordia to feature a lot of glass and open spaces in its design, but it’s not the first. Both the Offutt School of Business and Knutson Campus Center are open and inviting to students and encourage collaboration as well.

A Campus-Wide Look While the University of South Dakota still has traditional architecture, the university has opened five modern facilities in the past eight years that feature walls of glass, open, collaborative learning spaces and high-tech classrooms. The Lee Medicine & Science building was renovated in 2008, while the Muenster University

Center and Beacom Hall opened in 2009, the Wellness Center opened in 2011, an addition was completed at the Muenster University Center in 2014, and the Sanford Coyote Sports Complex opened this fall.

“USD has continued to focus on designing our new buildings on campus so that our facilities will enhance the student-learning experience,” says Scott Pohlson, vice president for enrollment, marketing and university relations. “All of our new building projects, both small and large, have elements that enhance both collaborative learning and technology.”

Pohlson says the Sanford Coyote Sports Center “defines collaborative learning and high-tech. The building includes classrooms for physical therapy and occupational therapy students, along with a new basketball arena and stateof-the-art physical training rooms for our athletes. Faculty and student researchers will be able to use the training rooms as their laboratory. Collaboration was a goal from the beginning with this amazing new facility.”

Pohlson says similar collaborations and high-tech classrooms can be found

at Beacom Hall, which is home to the Beacom School of Business, and at Lee Med, which is home to the Sanford School of Medicine. “These buildings are essential to what students are looking for when wanting the best education,” Pohlson says. “While the most important aspect of any learning environment is the professor or instructor, modern technology and facilities are a very close second for students deciding where to attend college.”

As USD started transforming its campus almost a decade ago, Pohlson says “we wanted to move our campus into spaces that not only meet sustainability standards, but were visually appealing to visitors and students. These new designs bring not only a modern look, but also new efficiencies along with gorgeous new views for our campus. All future plans call for this same look and feel as we are very pleased with how these buildings turned out.” PB KAYLA PRASEK

Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

Collaborative, flexible spaces will be a key aspect of Concordia College’s science facility, which is currently under construction.

IMAGE: CONCORDIA COLLEGE

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HEALTH CARE

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ONSITE CLINICS ARE SAVING COMPANIES MONEY, WHILE MAKING PREVENTIVE CARE AND REGULAR CHECKUPS CHEAPER AND MORE CONVENIENT FOR EMPLOYEES AND THEIR FAMILIES

By lisa gibson

Delivering Health Care

Differently T

ABOVE: Sarah Breitzman, CNP, helps 3-year-old Charlie Thimmesh check his mom’s glands at a clinic owned by Alexandria Industries in Alexandria, Minn. Amy Thimmesh is the quality manager for Alexandria Industries.

IMAGE: BETH LEIPHOLTZ/FORUM NEWS SERVICE

hree-year-old Charlie Thimmesh didn’t think his checkup was necessary and didn’t want the doctor to weigh him, measure him or check his ears and throat.

Because he was visiting Alexandria Industries’ clinic that serves its employees and their families, Charlie’s initial visit to the doctor could be a meet and greet that increased his comfort level. That visit ended with an agreement that he would indeed come back to see his new friend Sarah Breitzman, a certified

nurse practitioner, for all those tests. Next time, he will be ready.

Alexandria Industries, a manufacturing company based in Alexandria, Minn., partnered with Achieve Wellness to offer its employees and their families a convenient clinic only a block and a half away from their workplace.

Alexandria Industries Family Health & Wellness Clinic works like a standalone benefit.

Employees and their families can visit the clinic at no cost as many times as they need to.

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HEALTHCARE NOVEMBER 2016 VOL 17 ISSUE 11

Charlie Thimmesh, 3, listens to his mom’s heart through a stethoscope at Alexandria Industries Family Health & Wellnesss clinic. IMAGE: BETH LEIPHOLTZ/FORUM NEWS SERVICE

So Charlie’s mom, Amy Thimmesh, quality manager for Alexandria Industries, won’t pay anything out of pocket for his appointments, and Charlie can take the time he needs to get more familiar with the clinic staff and the procedures his checkup will entail.

‘Responsive and Timely’ Alexandria Industries and Achieve Wellness initially partnered to develop a wellness program for employees that helped evaluate risk factors such as high blood pressure, high cholesterol, glucose levels, poor lifestyle choices or smoking.

“So then we started a conversation: How do we use that information to manage our health care differently so that we don’t find ourselves caring for chronic disease as a result of these risks manifesting into a disease?” says Lynette Kluver, director of organizational development for Alexandria Industries. “Perhaps it was time to deliver

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health care a little bit differently.” The clinic opened in September.

With unlimited visits, as well as labs and testing at no cost, the onsite clinic takes the hassle and high cost out of preventive care.

“The clinic can be more responsive and timely,” Kluver says.

“The most important thing we can potentially do for somebody is help guide them toward a lifestyle that is going to further reduce their risk,” says AJ Sherman, chief operating officer of Achieve Wellness, which operates several employer-owned clinics across the country. “We’re able to do that in an environment in this clinic without some of those constraints and parameters that you see in that traditional environment.

We’ve got the right staff, we’re very excited to be working with Alexandria Industries on this project and there are some great things that are going to happen here in the future.”

Marvin Windows & Doors in Warroad, Minn., owns a similar clinic that serves its employees and their spouses. Some visits to

HEAlTH CARE

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Perhaps it was time to deliver health care a little bit differently.

–LYNETTE KLUVER

DIRECTOR OF ORGANIZATIONAL DEVELOPMENT ALEXANDRIA INDUSTRIES

Marvin’s clinic do require a copay, but preventive visits such as annual physicals, blood pressure evaluations and diabetes management are 100 percent covered, according to Alissa Partee, director of Total Rewards for The Marvin Cos. “The premise of the clinic is to offer employees affordable, convenient, highly accessible care that makes sense,” Partee says. “Health care is rapidly changing — how people access care, how much care costs — and there’s a lot of variables that go into that location. When we looked at an onsite clinic, we found a way that we could normalize some of that variability.”

How it Works Alexandria Industries owns the clinic and pays for the space and equipment,

Charlie Thimmesh, 3, talks to certified nurse practitioner Sarah Breitzman at Alexandria Industries Family Health & Wellness Clinic.

IMAGE: BETH LEIPHOLTZ/FORUM NEWS SERVICE

while Achieve Wellness operates it and handles all confidential medical records just as any clinic would. Achieve Wellness also is responsible for recruiting and hiring clinic staff. Marvin partnered with HealthStat to operate its clinic and the two organizations employ an operational structure similar to that of Alexandria Industries and Achieve Wellness.

Staffing is a “wild card,” Sherman says.

“You don’t always know how long it’s going to take to find that person.” But the environment of the clinic was appealing to practitioners during the hiring process, he adds. “It’s so drastically different from what they’re used to working with in their current, traditional environment.”

Employees at both Alexandria Industries and Marvin can still choose traditional health care insurance and

continue to visit practitioners off-site.

But most employees do choose to take advantage of the clinic for themselves and their families, Kluver says, adding the feedback from employees has been “absolutely amazing.” Partee agrees.

There are limitations to services the clinics can provide. They do not offer imaging or inpatient services, for example. Sherman says if a patient requires a referral for a service Alexandria Industries’ clinic can’t provide, Achieve Wellness works with that patient to ensure the best care possible, focusing on conscious consumerism and helping the patient evaluate costs and best possible outcomes, he adds. “And really just go over those options with them to make sure they’re making the best decision

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HEALTHCARE NOVEMBER 2016 VOL 17 ISSUE 11

for them and their family, without any other incentives to move them through any particular system just because of a business relationship or anything like that. It’s really a very pure setting. We’re very proud of that aspect of it.”

Growing Trend Marvin and Alexandria Industries are among many companies that are choosing to offer onsite clinics for their employees and families, as health care costs rise and policies change.

“There’s really been a resurgence in onsite clinics in the last couple years as employers are looking to increase productivity, as they’re looking to really keep costs down,” says Brooks Deibele, vice president of group markets for Blue Cross Blue Shield of Minnesota. “It’s an opportunity for the employer to keep costs down. It’s also an opportunity for their members to decrease their out-ofpocket costs as well.”

Partee says it’s too soon to tell if Marvin’s employee clinic, open since January, will result in a cost savings for the company. For Alexandria Industries, Kluver says the onsite clinic likely will

save money, particularly in office calls, lab expenses and prescription benefits.

The clinic doesn’t have a full pharmacy but can provide some generics.

Sherman adds that the structure effectively bypasses markups in health care costs paid at traditional clinics.

“Because we don’t have that overhead that a large clinic chain or a large hospital has, we have the ability to work out a contractual structure with our clients that really simplifies things,” Sherman says.

“There are some tremendous markups on basic products and services delivered through our traditional health care system that are quite unbelievable.”

BCBS of Minnesota works with about 12 companies that own clinics, Deibele says. The trend has taken off more quickly in Minnesota than it has in neighboring North Dakota. Deibele speculates that could be a result of multiple factors, but trends like this also tend to gain more traction within certain industries. “Minnesota has always been a progressive health care marketplace,” he says.

Michael Carlson, director of employer consulting and wellness services for

Family photos hang on the wall at Alexandria Industries’ clinic for employees and their families.

IMAGE: ALEXANDRIA INDUSTRIES

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Blue Cross Blue Shield of North Dakota, says the group has collaborated with employers in the state to study the feasibility of onsite clinics. “The viability of an onsite clinic depends heavily on the volume of employees located at one individual location,” he says. “Because of that requirement, we have not experienced the need for onsite clinics in North Dakota.”

Deibele predicts the trend will grow and expand in the coming years. “As costs continue to escalate, as an increase in chronic conditions continues to escalate, employers are looking for ways to better manage the health of their population, improve productivity and ways to ultimately drive their costs down. It’s a low-cost, effective way to manage certain conditions and help drive preventive care.”

Not to mention the benefits it brings to little boys like Charlie who like to ease into their doctor visits. PB LISA GIBSON

Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

HEALTH CARE

Waiting areas at Alexandria Industries’ clinic for employees and their families are designed to look like a home. IMAGE: ALEXANDRIA INDUSTRIES

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Exam rooms at Alexandria Industries Family Health & Wellness Clinic are equipped to handle many types of care. IMAGE: ALEXANDRIA INDUSTRIES

Marvin Windows & Doors owns clinics at its Warroad, Minn., and Ripley, Tenn., locations. Employees and their spouses are eligible to visit the medical facilities for basic care.

IMAGE: MARVIN WINDOWS & DOORS

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THESTARTUPLINE NOVEMBER 2016 VOL 17 ISSUE 11

THE

STARTUP

LINE NATE LEBEN

NEW HEIGHTS Two Grand Forks entrepreneurs are entering the UAS industry, making use of opportunities the city offers for startup companies

ISIGHT CO-FOUNDER

by Kayla Prasek

N ADAM LINGWALL ISIGHT CO-FOUNDER

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ate Leben and Adam Lingwall manage rental property together but had always talked about starting a sustainable business together. When they decided the time was right to take that leap, they thought about what they were good at and what resources North Dakota had to offer.

Both Leben and Lingwall are veterans of the Air National Guard and Leben worked for a defense contractor for 10 years flying unmanned aerial systems, which led the two to start ISight RPV Services, a provider of UAS operations based at the University of North Dakota Center for Innovation in Grand Forks. Leben and Lingwall founded ISight in 2015, initially funding it themselves. They attended an Innovate ND Entrepreneur Boot Camp and made the decision to call the Center for Innovation home.

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STARTUP LINE

Adam Overvold (left), chief pilot for ISight RPV Services, and Raif Kempf get ready for a flight. IMAGE: ISIGHT RPV SERVICES

Raif Kempf, chief data acquisition specialist for ISight RPV Services, puts together a fixedwing unmanned aircraft in preparation for a flight. IMAGE: ISIGHT RPV SERVICES

Adam Overvold prepares to launch a fixed-wing unmanned aircraft.

IMAGE: ISIGHT RPV SERVICES

PB

The company flies fixed-wing aircraft rather than the usual quadcopters most people are familiar with, a decision ISight made so the company could focus on the precision agriculture sector, Leben says.

In the year and a half since Leben and Lingwall started ISight, they have worked with EdgeData, a Grand Forks big data company, as its service provider for wind turbine inspection. ISight has also been part of a simulated beyond-line-of-sight project with the Northern Plains UAS Test Site and UND, and a research project with Delta Waterfowl, a project Leben is particularly proud of.

“They were doing research on ducks, so we flew over the area looking for hot spots, which helped direct their researchers to where the ducks were,” Leben says. “Before that, they were driving around on fourwheelers looking for nests, so it was very old-school. At first they weren’t sure how we could help them, but they liked how well our process worked.”

ISight has also received a couple grants to complete a project with the Northern Plains UAS Test Site and a project in the oilfields of western North Dakota. “Our goal is that projects like these will hopefully lead to long-term contracts,” Leben says.

ISight also works closely with UAI International, another business located at the Center for Innovation, to share assets and crew, Leben says. The two companies’ partnership is one of the benefits of being located at the Center for Innovation, he says. “It was the easiest choice for us, because it is an incubator. The network the center provides is such a benefit. Anytime someone comes to Grand Forks and needs pilots to fly their aircraft, the center is a great advocate for the businesses located here.”

Adam Overvold watches the UAS take off. IMAGE: ISIGHT RPV SERVICES

39

Adam Overvold and Raif Kempf display the company’s aircraft. IMAGE: ISIGHT RPV SERVICES.

THESTARTUPLINE NOVEMBER 2016 VOL 17 ISSUE 11

Friendly competition is good for the industry.

–NATE LEBEN CO-FOUNDER ISIGHT

The Center for Innovation is home to 24 UAS companies. “It’s a challenge, but when we started, we said we would only hire commercialrated pilots, which is valuable,” Leben says. “Friendly competition is good for the industry.”

As a startup company, Leben says cash flow has been the biggest challenge ISight has faced. “That’s where Innovate ND has helped and where partnering with UAI has been valuable,” Leben says. “It’s hard to hire more people when you can’t pay them. We (Leben and Lingwall) both have full-time jobs, so we’re also trying to figure out when we make the jump to be full-time entrepreneurs. But without these partnerships we’ve had, we’d be a full year behind where we are now.”

When trying to forecast the future, Leben says the next big change to the industry will be the ability to fly beyond line of sight, which is currently prohibited by regulations. “It could be next year or it could be in five years before that happens,” Leben says.

Leben says the lesson he would pass on to those thinking about starting a business is to “hustle. Get your name out there, but don’t go too fast. Make sure you do a good job on those first couple jobs you’re hired for so you can build a reputation and more jobs will follow.” PB KAYLA PRASEK

Staff Writer, Prairie Business 701.780.1187 kprasek@prairiebusinessmagazine.com

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For more than 16 years, business and community leaders have turned to Prairie Business as a valued partner in their overall business-to-business marketing and communications strategy. Prairie Business is your window into business and industry in North Dakota, South Dakota and western Minnesota. Whether you are involved in higher education, health care, finance, architecture and engineering, agribusiness, energy, economic development or construction, we’ve got you covered.

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NOT JUST FOR BUSINESS GRADUATES MSU Moorhead’s AACSB-accredited MBA will improve your effectiveness as a leader in your industry. No prior business degree required!

TOP: While ISight RPV Services focuses on flying fixed-wing UAS, it also has the capability to fly quadcopters.

IMAGE: ISIGHT RPV SERVICES BOTTOM: ISight owns several unmanned aircraft, but if another company needs a pilot to fly its aircraft, ISight offers that service as well. IMAGE: ISIGHT RPV SERVICES

MSUM’s MBA bolsters skills that stand the test of time— creativity, innovation and problem solving. Offered both online and hybrid, giving you the choice of how you want to learn. mnstate.edu/mba | 218.477.4073 Minnesota State University Moorhead is an equal opportunity educator and employer and is a member of the Minnesota State system.

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GENERATION NEXT

Emily Haagenson ► JUNIOR, UNIVERSITY OF

MARY, BISMARCK, N.D. ► DOUBLE MAJOR: BUSINESS ADMINISTRATION AND SPANISH

About School Emily Haagenson graduated from Moorhead (Minn.) High School in 2014 and decided right away during her freshman year of college that she wanted to major in business administration.

Her father and mother both are professors — human resources and business, respectively. So it’s a natural fit, she says. She knew she didn’t want to do anything related to science, and especially nothing in the medical field. “I’m too squeamish,” she says.

And the language portion of her degree? “I want to be fluent in Spanish.” She will be studying in Costa Rica for five weeks.

She could graduate from the University of Mary in December 2017, wrapping up her undergraduate degree in just three and a half years. But she is considering sticking around until spring 2018. “I really love it here at the University of Mary,” she says. “I really love being involved on campus.” And she is — she’s a resident assistant, serves on the student government and helped organize TEDxUMary, among many other activities.

About Success Among Haagenson’s achievements is being selected to attend the Iacocca Institute Global

IMAGE: KYLE MARTIN PHOTO

PB

By lisa gibson

Connections

are Crucial Village for Future Leaders of Business and Industry at Lehigh University in Bethlehem, Pa., during the summer of 2016. U of Mary sends only two business students each year for the fiveweek intensive course aimed at teaching young professionals business, culture and leadership skills. Her class included 83 people ages 18 to 39 from 49 countries.

The experience was amazing, she says, adding her favorite and most valuable part was making connections with people from all over the world. “I learned so much,” she says. “It gave me a new perspective on different countries. When I think of a country, it’s a person I think of, not a random place on a map.”

About A Career While Haagenson hasn’t started applying for post-graduation jobs quite yet, she knows what she’s looking for in an employer. “I really want to work for an organization that lives out its values,” she says, emphasizing the necessity of those values syncing with hers — social responsibility, promoting human dignity and respect for employees as well as clients.

She says she found all those crucial values, and more, during a summer internship at Discovery Benefits in Fargo. (Yes, she

confirms, it’s the company with an enormous slide in the office.)

While there, her decision to emphasize an HR aspect of her business administration career was cemented, as she learned the significance of quality training and job development for employees.

She hopes to intern at Discovery again during her college career.

About the Job Market Companies are actively recruiting college students, Haagenson says, as the region grapples with a workforce shortage. Career fairs, internships and other opportunities give companies a chance to get in front of Haagenson and her peers — the next generation of the workforce. And it’s not uncommon for internships to lead to full-time, post-graduation job offers. That, of course, is an enormous benefit for both the student and the company.

“The job search for a college student is ongoing, especially in the business sector,” Haagenson says, where networking is a must.

Because, after all, connections are crucial. And she has no plans to leave the Upper Midwest. PB LISA GIBSON

Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com

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INSIGHTs&intuition NOVEMBER 2016 VOL 17 ISSUE 11

Q.

INSIGHTs & INTUITION

What are you doing to connect with local college students and encourage them to explore post-graduation career options within your company?

We hire a team of “Flinterns” each summer who get to work as a group to take a pro-bono project from start to finish. We also have interns throughout the year depending on department needs. All interns are fully integrated into the agency, which gives them diverse experience and gives us the

MICHELLE MILLER RECRUITING MANAGER KLJ BISMARCK, N.D.

KLJ actively recruits new employees by reaching out to colleges across the region. In addition to competitive compensation and benefits, our diverse company structure provides exceptional opportunities for ongoing training,

American Crystal Sugar Co. participates in local and regional career fairs to help engage students in our career opportunities. We offer engineer and ag internships and have regular contact with tech school students across Minnesota and North Dakota to promote our skill level employment options. To further our reach, we

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opportunity to see if they fit with our company culture. Last year, we received 120 applications for four positions, so the program is very competitive. We also have a millennial roundtable group that meets every month to make sure we’re embracing this generation’s unique skills and work habits.

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JODI DUNCAN PRESIDENT FLINT GROUP FARGO

tuition assistance and professional growth. KLJ also offers students valuable internships that often lead to full-time jobs after graduation.

We know that by investing in our employees, we can provide top service to our clients.

attend middle and high school events to help students understand we offer rewarding, thriving careers that are close to, if not right in, their hometowns. We also take every opportunity to highlight the multiple career development paths and education assistance we offer — because when employees advance, so does our company.

PRAIRIEBUSINESSMAGAZINE.COM

MANDI JOHNK HUMAN RESOURCES AND RECRUITING SPECIALIST AMERICAN CRYSTAL SUGAR CO. MOORHEAD, MINN.

With such tremendous talent coming out of the universities and post-secondary institutions of the Dakotas and Minnesota, Dacotah Bank is working to develop deeper relationships with professors, administrators and students across our footprint. In addition to our internship and employee development opportunities, we’ve been hosting receptions at the various colleges and universities which allow students to

MARLENE MILLER DIRECTOR OF TALENT STRATEGY ALTRU HEALTH SYSTEM GRAND FORKS

program at the local college, and then spending time visiting about opportunities within our companies.

And we invite students from the local colleges into our offices, where employees talk to them about their jobs. It gives students a chance to ask questions and get answers from someone who’s living the career they’re pursuing.

connect with current employees and members of our leadership team in a more informal manner. We consider Dacotah Bank to be an employer of choice — one that seeks out individuals who fit into our culture and will strive to carry out our mission, vision and values — and we’re committed to providing soon-to-be and recent graduates with the opportunity to have a long-term, fulfilling career as part of the Dacotah Bank family.

Nearly 500 college students have learning experiences at Altru each year, completing practicums, clinical rotations and internships.

Creating meaningful experiences for students to learn, grow and love what they do is our goal.

Altru is active in the classroom, supporting community events, and leveraging online resources. We use college job boards, host luncheons for students, attend career fairs, display information at career centers and connect with student

INSIGHTS & INTUITION

ANNE JONES VICE PRESIDENT OF HUMAN RESOURCES MDU RESOURCES GROUP INC. BISMARCK, N.D.

MDU Resources and our companies engage with students in many ways, including traditional internships and conducting practice interview sessions, which give our managers a chance to practice giving interviews while students get tips on being interviewed. We also do some more unique things, such as taking lunch to students in the lineworker

PB

PAUL GEORGOFF TALENT DEVELOPMENT GENERALIST DACOTAH BANK INC. ABERDEEN, S.D.

organizations. Our shadowing program fills 1,600 student experience requests annually, and fostering strong relationships with instructors is an efficient and positive way to share information with students. Our employee college alumni join recruiters in the classroom, bringing a trusted and relevant voice. Providing feedback to students, sharing our passion for what we do, sending thank you notes and small gifts extend our appreciation.

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NOVEMBER 2016 VOL 17 ISSUE 11

u.s. student loans in repayment expected to default within 20 years 30.0 16

subsideize subsidized d unsubsidized stafford

p e r c e n ta g e s

22.5 12

(undergrad )

unsubsidized stafford

15.08

(graduate)

7.54 0.00

percentage of population without health insurance

‘10

‘11

‘12

‘13

‘14

parent plus plu s parent plu s grad plus consolidation consolid ation

‘15

16 p e r c e n ta g e u n i n s u r e d

PB

BYTHENUMBERS

m.n.

MINN. n.d. s.d.

12 8 4 0

‘09

‘10 ‘11 ‘12 ‘13 ‘14 ‘15

year loan issued

year

Unemployment

number below poverty level

percentage below the poverty level

120 100 100 in thousands

15 p e r c e n ta g e s

14 13 12 11 m.n.

MINN.

n.d.

s.d.

80 70 60

2015 2014

10

90

2015 2014

50 m.n.

MINN.

s tat e s

n.d.

s.d.

s tat e s

migrant population 40,294

457,185

239,910

1,275,855

total 5,489,594

6,307 28,649

total 756,928

minnesota

27,845

268,383

total 858,469 482,062

3,716,260

born in state

5,076

557,165

north dakota born in other u.s. state

south dakota

citizens born outside u.s.

forEIgn born

Unemployment Insurance Claims state

filed week ended

inital initial claims

reflecting week ended

continued claims

covered uninsured employment employment rate

m.n.

MINN. n.d. s.d

10/1/16 10/1/16 10/1/16

2,960 393 239

9/24/16 9/24/16 9/24/16

26,514 2,340 1,046

2,745,208 427,799 404,882

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.97 .55 .26

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DATA PROVIDED BY DAVID FLYNN , CHAIR OF THE UNIVERSITY OF NORTH DAKOTA DEPARTMENT OF ECONOMICS. REACH HIM AT DAVID.FLYNN@BUSINESS.UND.EDU

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