pg. 26
ALSO
Child Care as a Recruitment Tool
Digi-Key incentivizes child care to attrac t evening shif t workers pg. 22
What Employees Really Want
Sur vey shows salar y, benefits not always top priority pg. 48
September 2014
Integrity is a company built on a foundation of values. An evolution of principles established over a century ago, passed down through the Marvin family. Building windows and doors with pride, here in America.
If you have this level of pride, dedication and commitment, come join us. Be a part of our team as we continue our unwavering dedication to quality, service, innovation and community.
© 2014 Marvin Windows and Doors. All rights reserved. ® Registered trademark of Marvin Windows and Doors Integrity is proud to have been selected as one of the top “50 Best Places to Work” in the category of top 25 large companies (100+ employees). We’re committed to making our business one of the best in the region and we’d like to congratulate all the companies nominated this year. Apply in person: 1616 43rd Street NW, Fargo, ND 58102 Apply online: www.marvin.com/fargo Email: Integrityjobs@marvin.com Call: 701-277-0522
Positions Available: Truck Drivers Production Associates Engineering Information Systems Maintenance Quality Research and Development Shipping/Receiving Forklift Operators Computer Programmers PRIDE. OUR MOST VALUABLE ASSET. Integrity employees Dale J., Girley G., and Donnie R. at the Wood-Ultrex factory in Fargo, ND.
Job
Keynote Speaker
JENNIFER M C CLURE
A sought-after speaker and trainer, Jennifer McClure has over 25 years of experience leading human resources and talent acquisition efforts, partnering with senior executives to increase their impact. With a focus on education and empowerment, McClure will share the critical skills that business leaders—not just human resources leaders— must develop in today's global environment.
2014 GOVERNOR’S WORKFORCE & HUMAN RESOURCES CONFERENCE
Governor Jack Dalrymple continues to place a high value on developing the state’s workforce to meet the growing needs of our business community. This interactive conference will showcase practical, demand-driven solutions for today’s workforce challenges.
Brought to you by: TOGETHER OCT. / 8-9, 2014
EDUCATION | BUSINESS | GOVERNMENT
BISMARCK, NORTH DAKOTA
REGISTER TODAY NDWorkforceandHR.com
4 Prairie Business Magazine September 2014 |INSIDE| September 2014 VOL 15 ISSUE 9 FEATURES DEPARTMENTS 6 Editor’s Note BY KRIS BEVILL Culture creates award-winning workplaces 8 Business Advice BY MATTHEW D MOHR Contract language 8 Management Matters BY JOHN GIRARD Rethinking email 10 Finance BY MATTHEW VARILEK Financial literacy basics for prospective small business owners 12 Research & Technology BY PAT COSTELLO Celebrating manufacturing in SD 14 Economic Development BY DWAINE CHAPEL Collaborating to move manufacturing forward 16 Prairie News 20 Prairie People 22 Business Development Child care as a recruitment tool 52 Social Media How to succeed at social media 54 Workforce Recruiting young professionals back to ND 56 Talk of the Town Growing with the region 58 Energy 62 Energy: Drilling Data 64 Business to Business 66 By the Numbers Next Month The October issue of Prairie Business magazine will highlight how a local tech firm uncovered a frightening statistic regarding the safety of most of the nation's bank websites The issue will also cover a federal venture fund developed to boost agriculture Which companies were rated the best places to work by their employees? See page 26 for the results. 26 50 BEST COMPANIES The 50 Best Places to Work Results from anony mous employee satisfaction sur veys hig hlig ht some of the best employers in the nor ther n Plains Scan this with your smar tphone's QR Reader to visit our website Follow us on Twitter https://twitter com/PrairieBiz Check us out on Facebook https://www facebook com/PrairieBusiness
2014 Williston Economic Development Summit .....................................................................Sept. 2-4 Williston, N D Information: willistonsummit com FargoConnect Sept 3 Fargo, N.D. ..............................................................................................Information: fargoconnect.com Big Iron Farm Show Sept 9-11 Fargo, N.D. .......................................................................................Information: bigironfarmshow.com OTA14:Fargo Sept 12 Fargo, N D Information: weareota com EVENTS 48 EMPLOYEE PERSPECTIVE What Employees Really Want Sur vey shows salar y, benefits not always top pr ior ity
A United Express CRJ-200 arrives at Jamestown Regional Airport. PHOTO: MATTHEW LEITNER
KRIS BEVILL Editor
Culture creates award-winning workplaces
This issue includes the results of our first Best Places to Work contest We're also sharing some of the insights we ’ ve learned throughout the survey process regarding what it takes to make a workplace great. From flexible workdays to in-house fitness centers and paid time off for service missions, the 50 companies you ’ re going to read about represent a diverse number of ways businesses can boost their employee recruitment and retention strategies In an area with extremely low unemployment and rapid economic growth, we ’ re happy to share some of their stories with you and recognize them for making employee happiness and well-being a priority.
A little about the nomination process: Earlier this summer, we put out a call on social media, in our magazine and through other media outlets, inviting employees to visit our website and complete an anonymous employee satisfaction survey. The survey allowed participants to rate their employer in areas including work environment, employee benefits and employee happiness. We reviewed all completed surveys and selected the top 25 small for-profit companies (companies with 99 or fewer full-time employees) and top 25 large for-profit companies (those with 100 or more full-time employees) based on survey results and the number of surveys submitted per company.
Having never conducted a contest of this type before, we weren’t sure what to expect but we were blown away by the outpouring of responses we received Nearly 2,000 surveys were submitted and more than 100 companies received nominations. We sincerely thank every employee who took time to participate and share with us why they like their workplace. We look forward to making this contest an annual event and hope to expand it in future years to include nonprofit groups and other niche categories
Creating a successful culture is certainly worthy of recognition As Tonya Stende, president of Dale Carnegie Business Group of North Dakota, points out, creating and implementing a truly successful culture initiative is a lifetime commitment for management It’s also a financial commitment on behalf of the company But, if done right, good company culture more than pays for itself in the long-run Studies have proven that satisfied employees are more productive and more likely to stick with their employer
Many of the comments on surveys we received confirmed what leadership experts have been preaching for years salary is not the most important aspect of a job While pay increases are certainly always appreciated, higher pay rarely topped employees’ wish lists when asked what improvements could be made to make their jobs better. They were much more likely to cite issues that culture initiatives could address, such as relationships with their managers, belief in leadership and pride in their workplace Contributing writer Rob Swenson covered the employee perspective in his article, “What Employees Really Want,” and reported on several of the issues commonly mentioned in survey responses. Some, such as workforce shortages, are regional issues and not quickly solvable by companies. Others, such as recognition for good performance and input in company decisions, can be resolved fairly easily by making those items part of the company culture
As you read this issue, I hope that you will think about your company culture and perhaps implement a few tweaks to the initiative if you recognize a need, or pat yourself on the back if you recognize your company in the comments about what makes a workplace great We all spend a great deal of time at our workplace Let’s enjoy it
6 Prairie Business Magazine September 2014 |EDITOR’S NOTE|
kbevill@prairiebizmag.com
KORRIE WENZEL, Publisher
RONA JOHNSON, Executive Editor
KRIS BEVILL, Editor
BETH BOHLMAN, Circulation Manager
KRIS WOLFF, Layout Design, Ad Design
Sales Director: JOHN FETSCH
701 212 1026 jfetsch@prairiebizmag com
Sales:
BRAD BOYD - western ND/western SD 800 641 0683 bboyd@prairiebizmag com
SHELLY LARSON - eastern ND/western MN 701 866 3628 slarson@prairiebizmag com
Editor: KRIS BEVILL
701 306 8561 kbevill@prairiebizmag com
Editorial Advisors:
Dwaine Chapel, Executive Director, Research Park at South Dakota State University; Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson, Vice President, Marketing and PR , Greater Fargo Moorhead EDC; Tonya Joe (T.J.) Hansen, Assistant Professor of Economics, Minnesota State University Moorhead; Dusty Johnson, Chief of Staff for South Dakota Gov Dennis Daugaard’s office; Brekka Kramer, General Manager of Odney; Matthew Mohr, President/CEO, Dacotah Paper Company; Nancy Straw, President, West Central Initiative
Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203 Qualifying subscriptions are available free of charge Back issue quantities are limited and subject to availability ($2/copy prepaid). The opinions of writers featured in Prairie Business are their own Unsolicited manuscripts, photographs, artwork are encouraged but will not be returned without a self-addressed, stamped envelope.
Subscriptions Free subscriptions are available online to qualified requestors at www prairiebizmag com
Address corrections
Prairie Business magazine PO Box 6008
Grand Forks, ND 58206-6008
Beth Bohlman: bbohlman@prairiebizmag.com
Online www prairiebizmag com
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Contract language
BY MATTHEW D. MOHR
Generations ago, changes often occurred during the contract negotiations process which were not clearly explained or identified before signing Naturally, some parties involved took unfair advantage of the trusting and less informed The practice was basically abolished due to continued arguments and various court cases Most lawyers today are much more honest and few would make contractual changes without both parties’ knowledge Yet, with today’s easy technology, lawyers are not always involved with ever y contract. As a result of many business contracts being negotiated, written and entered into without competent legal advice, dishonesty in contract changes is resurfacing.
Along with uninformed contract language changes, “fine print” and much of the additional verbiage used to explain what is being agreed to also include errors and inconsistencies which are filled with ways to cheat the unsuspecting
On two occasions in the last year I have been presented with the “final” copy of a contract electronically
Rethinking email
BY JOHN GIRARD
In the 2.0 world in which we work, live and communicate, does email still matter? With all of the emphasis and resources focused on Tw itter, Facebook, LinkedIn and other social media, can a relict of the 20th centur y make a difference from a business point of view? By now wise executives have realized that the future of connecting and collaborating with customers and clients is all about following, liking, linking and poking Email has gone the way of the cursively penned letter right?
Surprising to some, email is certainly not passé and should command the attention of C-suite in most organizations A well-designed email strategy remains one of the most effective and efficient ways to cultivate and nurture a solid customer base. Key to this success is the wellsigned element Few things annoy consumers (and probably you) more than a poorly executed email campaign that is essentially a spam machine. At the other end of the
which had material language changes which were never agreed to and which favored the opposite party. One dubiously allowed a customer the right not to pay for product received Another demanded my guarantee for a service well outside my control or ability to influence Fortunately I took the time to read through the complete final contracts
With the advent of electronic communication means and the ease it allows to make unidentified changes, one must be very careful not to be swindled by unscrupulous persons Lawyers may get bad publicity and are often condemned, but in most cases they are a valuable asset to have on your team, and few lawyers today will be party to contract negotiations which are dishonest
It is almost impossible to protect against every type of fraud, but contract fraud is one thing to be looking for PB
Matthew D. Mohr CEO, Dacotah Paper Co mmohr@dacotahpaper.com
spectrum, emailed newsletters, time-sensitive deals and advanced notice of product launches are all generally very well received This is especially true when the customer perceives value in the email, perhaps by being the first to know something
As you design your email strategy, remember to consider the impact of mobile device and tablet email. Although the statistics vary, there has been a tremendous increase in mobile/tablet access, something approaching a three-fold increase in the last three years Most emails are now initially opened on a mobile device or tablet.
Email is the future If you don’t believe me, send me an email PB
John Girard Founder, Sagology John@JohnGirard net Twitter: @JohnGirard
8 Prairie Business Magazine September 2014 |BUSINESS ADVICE|
|MANAGEMENT MATTERS|
Financial literacy basics for prospective small business owners
BY MATTHEW VARILEK
What should entrepreneurs be aware of before they decide to devote a considerable amount of time, effort and resources to a small business startup? Here are 10 financial literacy “hot buttons” for new entrepreneurs and prospective small business owners to consider:
1. Know your (and your family’s) tolerance for financial risk. There are no assurances there will be either short- or long-term financial stability, so everyone involved in the startup should have the emotional and financial capacity for a high level of uncertainty. Also, using personal savings, a 401(k) or other retirement plan as funding is a serious decision that one must carefully consider if there’s a potential for loss of funds.
2. Learn how a legal business structure can impact your future tax liability There are different tax advantages associated with formal corporate structures that accrue to both the company and the owners, and tax law changes nearly every year Discussing the available business structure options with a qualified accounting or legal professional can help determine the best course of action when forming the business.
3 Understand how much money it REALLY takes to start your business Most all startup projections for revenue growth are too optimistic, expenses are underestimated, and anticipated breakeven timeframes are too short A good plan is to double the projected cost to get to breakeven, and triple the timeframes.
4. Understand what startup expenses are crucial versus questionable Focusing on expenses that directly relate to revenue generation is one of the keys to financially managing a startup. Every startup expense should answer the question: “How does this contribute to the bottom line and get me closer to breakeven?”
5. Learn when it makes sense to use business credit. Business credit should be considered only when the money can be used for either of two purposes: increase revenues or reduce the costs of doing business
6. Understand the relationship between your credit history and business lending Lenders are literal-
ly banking on the owner ’ s prospects for success, and how an owner has managed their own personal finances to that point is an important indicator Even a compelling business plan may not overcome an owner ’ s poor or marginal credit history
7 Learn how to record and track business income and expenses. Accountants can only work with what they see. If it’s not recorded, it didn’t happen. Accurate records enable a business owner to gauge the financial health of the business through the use of ratios and other financial measurements. Having at least a basic computer-based financial system and keeping up with regular data input is a must
8. Learn how to read, interpret and use business financial statements. The income statement, balance sheet and cash flow statement each tell a different part of the story about the company ’ s financial condition. Together, they can be used to find company weaknesses and strengths Ratios derived from various sections of the financial statements provide clues to where a business owner needs to implement corrective actions before a situation becomes serious.
9 Understand how cash flow keeps a business alive A business can be profitable on paper, yet fail from a lack of cash flow. Without a solid foundational knowledge of such areas, a business owner is handicapped in terms of actually managing the company ’ s cash
10. Understand the financial implications of a new hire. Two major questions should be answered before anyone is hired: “How will they enable the business to increase revenues? How will they enable the business to be more efficient?” Quantifying these areas will help determine if a potential new hire is really worth what you will pay in wages, benefits and training time. PB
Matt Varilek SBA Regional Administrator, Region VIII Matthew.varilek@sba.gov
10 Prairie Business Magazine September 2014 |FINANCE|
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Celebrating manufacturing in SD
BY PAT COSTELLO
In South Dakota, our manufacturers play a vital role in our state’s overall economic health From food to fuel, cabinets to custom fabrication, bio-adhesives and beyond, South Dakota manufacturers produce an astounding array of products
What does this mean for our state? It means jobs. It means tax revenue. And, it means putting South Dakota on the map
Each year, South Dakota manufacturers export nearly $1.5 billion in South Dakota-made products to approximately 125 countries worldwide South Dakota manufacturers make up $4 25 billion of the state’s Gross Domestic Product and produce more than $850 million in taxable sales each year
In 2013, there were 1,128 manufacturing establishments in South Dakota that employ 41,518 individuals The average salary for these jobs was $42,448
So, there is no question that their impact is great and far-reaching. And we want them to continue to thrive
At the Governor’s Office of Economic Development, we are working not only to assist our manufacturers, but also to create awareness of their significance among the general public and media
In 2013, we held the first-ever South Dakota Manufacturing Week. The event was well-received, and communities and companies across the state opened their doors and gave the public a special peek at what they do.
This year, we are going even bigger The 2014 South Dakota Manufacturing Week will be Sept 29-Oct. 3, and we are already working to get more companies, more communities, and more members of the media and the public involved
The week will kick off on Monday, Sept 29
with Tour Day, when the GOED team is hitting the road and tour several manufacturing companies throughout the state We are encouraging communities and companies to set up their own tours as well
Tuesday, Sept 30 is Speak Out Day Various local civic organizations will host speakers from the manufacturing industry to discuss the importance of manufacturers
Wednesday, Oct 1 is Media Day, where local media are encouraged to visit the manufacturers in their communities
Thursday, Oct 2 is Student Day Middle schools, high schools, tech schools and universities will be opening their doors to host speakers from manufacturing companies to discuss their business and the significance and impact of innovative manufacturing.
The week culminates on Friday, Oct 3, which is National Manufacturing Day First established in 2012, this great event is growing each year, and I would like to encourage you to take part whether you are a manufacturer yourself, a member of the media, or part of the general public
For more information on South Dakota Manufacturing Week, please visit www sdreadytopartner com/SDMfgWeek2014 And, as you participate in the week’s activities, join the fun on social media using hashtag #SDMfgWeek2014. For more information, or to share how you are recognizing manufacturers in your community, contact our media relations coordinator, Natalie Likness at natalie likness@state sd us or 605-773-3301 PB
Pat Costello Commissioner
S D Governor’s Office of
Economic Development
Pat Costello@state sd us Twitter: @sdgoed
12 Prairie Business Magazine September 2014 |ECONOMIC DEVELOPMENT|
Seeing Through to the End
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Over 30 years in North Dakota means we’ve seen big projects, but this gas plant called for and other methods to test safety, and bridging our client’s quality assurance process with our The Science You Build On. To see the science our clients built on, go to www.braunintertec.com/Tioga
Collaborating to move manufacturing forward
BY DWAINE CHAPEL
Manufacturing businesses have been the anchor of driving growth in the region for decades. The current strength of the economy has reversed the trend of manufacturing facilities dow nsizing or relocating offshore, replaced instead w ith discussions of how to enhance manufacturing to assist in diversifying and further strenthening local economies
Enhanced manufacturing can be achieved by looking at existing products within a mature sector and applying innovative thought processes to enhance the product or process Communities within the region are focused on workforce. However, a result of having a workforce shortfall will lead to an opportunity for communities to assisting in enhancing its manufacturing sectors
There are two ideas that we should embrace within our region The first is to assist in facilitating collaboration between university researchers and industry by establishing a model to provide for the transfer of knowledge between university faculty and manufacturers The company would be able to contract for services provided by a group of professional researchers, which would offer the opportunity to solve an issue or to enhance a product more quickly This model would also encourage collaboration across industry sectors. The uniqueness of these conversations may include the exchange of a process in
one sector that would enhance another sector
The second notion to embrace in our region is to provide opportunity for entrepreneurs and industry to develop collaborative efforts This could be accomplished through the establishment of facilities that would provide access to development software and a variety of hand and fabrication tools These types of lab spaces would allow the entrepreneur to develop an idea into a prototype Facilities would be staffed with qualified machine and tool operators to assist the entrepreneurs
Communities can provide these types of spaces separately, however, it would be beneficial to have one location that offered space for both models, allowing researchers, industry and entrepreneurs to access a plethora of tools all under one roof
Manufacturing businesses are strong anchors to our community heritage and future growth It is important to develop solutions to enhancing our manufacturing sectors. The models discussed would lead to emerging technology and innovative collaborative thinking PB
Dwaine Chapel Executive Director Research Park at SDSU dwaine@researchparkatsdstate com
14 Prairie Business Magazine September 2014 |RESEARCH & TECHNOLOGY|
15 w w w prairiebizmag com Member FDIC. ©2014 Bremer Financial Corporation. All rights reserved. Bremer.com 800-908-BANK (2265) WORK HARD. BANK EASY. Managing a business is a big job. Whether you’re a start-up looking to grow or you’ve been around for decades, we’ll provide the personalized tools and financial support you need to help you achieve your business goals. Come see us today. FREE TIME
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The Arc of Dreams is expected to be installed between 6th Street and 8th Street in downtown Sioux Falls, S D IMAGE: CONFLUENCE/ SCULPTUREWALK
Unique sculpture planned for downtown Sioux Falls
SculptureWalk, a sculpture program dedicated to providing exhibits of outdoor sculptures in downtown Sioux Falls, S.D., recently announced plans for a massive stainless steel art installation that will span the Big Sioux River in the heart of the city’s downtown The Arc of Dreams will stretch the length of a football field and will feature a 15-foot gap 70 feet above the river to signify the leap of faith dreamers take to achieve their dreams Sturgis, S D -based sculptor Dale Lamphere will design and create the arc. The project’s estimated cost is $950,000. Construction is expected to take a year to complete and will begin when funds have been raised The estimated final installation is set for spring 2016
Spectrum Aeromed equipment used in Ebola victim transport
Aid workers stricken by the Ebola virus in Africa recently were transported back to the U.S. for treatment in aircraft equipped with Fargobased Spectrum Aeromed’s advanced life-support stretcher systems.
Georgia-based Phoenix Air Group Inc has been a Spectrum customer for about 12 years, according to Matthew Christensen, Spectrum vice president and account executive. Upon learning that its equipment was used in the mission, Christensen says Spectrum’s staff was excited, but not surprised. “Our mission is to save lives,” he says
H2M joins international advertising agency network
Fargo-based advertising agency H2M has been accepted as a partner with Worldwide Partners Inc , one of the world’s largest networks of independent advertising agencies H2M is the only North Dakota ad agency in the network, according to the company H2M successfully completed an application and approval process to become a member of Worldwide Partners.
David Hanson, president and CEO of H2M, says the partnership will allow his company to better handle client work in Europe and around the world. Likewise, he says Worldwide
Partners will gain access to the North Dakota market through H2M.
Sanford expands AirMed program to Dickinson
Sanford Health announced recently it expects to expand its air ambulance service, Sanford AirMed, to Dickinson, N D , this fall The health care organization made the announcement following the closure of Spirit Lifeline, a Texas-based air ambulance that had been providing service to western North Dakota Sanford currently provides helicopter service for patients in western and central North Dakota from its base in Bismarck The expansion of services to Dickinson will add a King Air B200 fixed-wing aircraft and a team of flight paramedics, flight nurses, pilots and mechanics.
Sanford AirMed’s entire fleet includes four helicopters and four airplanes from bases in Bismarck, Fargo, Sioux Falls, S.D., and Bemidji, Minn.
LATI receives national workforce training recognition
Lake Area Technical Institute in Watertown, S.D., received recognition in a report by policy think tank group ThirdWay for its hands-on approach to workforce development The report, “The 7 Habits of Highly Effective Workforce Programs,” was presented to Vice President Joe
Biden and U S Secretary of Labor Thomas Perez and stemmed from a policy forum on the future of the American workforce of which former LATI President Deb Shephard was a participant
LRH, Barnesville clinics merge
The Barnesville (Minn.) Area Clinic and Lake Region Healthcare in Fergus Falls, Minn , announced July 15 plans to merge effective Sept 1 Dr Owen Thompson, owner of the Barnesville clinic since 1992, says the merger will allow the clinic to continue to succeed as a viable primary care facility for its community
LRH’s other outreach locations include Battle Lake, Ashby and Elbow Lake, Minn , as well as the Fergus Falls Walk-in Clinic
CPA firm HLB Tautges Redpath changes name
Twin Cities-based public accounting firm HLB Tautges Redpath Ltd has changed its name to Redpath and Co Mark Gibbs, partner and client manager, is transitioning into the role of managing partner Jim Redpath, who was performing in the role of managing partner, is now a full-time partner and client manager. Additionally, the firm relocated its headquarters to St Paul The employee-owned firm has about 125 employees Additional offices are located in White Bear Lake, Minn., and Fargo, N.D.
16 Prairie Business Magazine September 2014 Prairie News Industry News & Trends
New Leaf Hospitality opens New Town hotel
New Leaf Hospitality has opened the Little Missouri Inn & Suites in New Town, N.D. The three-story, 90-room hotel includes a fitness center, business center, indoor pool, hot tub, complimentary breakfast for guests and meeting space Construction of the all-suite, extended-stay hotel, Teddy’s Residential Suites, is expected to be complete in October, according to the company. That facility, which is adjacent to the Little Missouri Inn, will include 103 rooms Together, both hotels are expected to employ about 60 people
Construction begins on Watford City hospital
McKenzie County Healthcare Systems has begun building a 120,000square-foot medical campus in Watford City, N.D. The building will combine the hospital, clinic and long-term care facility into one location and will allow for expanded outpatient capacity Additionally, the number of emergency room bays will be expanded from one to eight.
The USDA approved a $39 2 million loan for the project, which will finance about 70 percent of the project Additional financing will be provided through the Medical Infrastructure Loan program administered by the Bank of North Dakota and from McKenzie County Healthcare Systems through the MCHS Benefit Fund ONEOK Partners donated $1 million to the fund in June Hiland Partners, BakkenLink LLC and Halcon Resources also donated a total of $695,000 to the project, according to the North Dakota Petroleum Council
DAKOTA PARTNERS
Developing and maintaining the infrastructure in the Dakotas and neighboring states at Morris Inc. requires planning and partnering with our associates.
Our manufacturing division utilizes a skilled team of craftsmen and women to build state of the art aggregate processing equipment to create clean high grade materials for use in construction where asphalt and concrete are required.
Morris is also a Terex Powerscreen dealer in the Dakotas providing sales and rentals of mobile crushing and screening equipment as well as recycling concrete and asphalt into new road building material.
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WWW.MORRIS -INC.COM WWW.MORRIS-INC.COM Call Jeff Beskar for more information. 605.222.8511 Jeff.Beskar@morrisequip.com Fort Pierre, SD 0 0 1 1 1 0 7 2 8 r 1 at Morris Inc at Inc.
Kraus-Anderson opens Bismarck office
Kraus-Anderson Construction Co recently announced plans to open an office in Bismarck, N D , to meet the demands of increased regional development and the Bakken energy boom Ross Wilmes has been hired as senior project manager in the new office and will work with Dave Lenss, KA’s operations manager for North Dakota Prior to joining KA, Wilmes served as project manager for North Dakota-based Comstock Construction Inc.
KA opened an office in Minot, N D , in 2011 The company has a 40-year history of construction management in North Dakota.
Black Hills CPA firm launches pro bono program
Rapid City, S D -based full-service public accounting firm Casey Peterson & Associates has created a program to provide accounting services and volunteer time to selected Black Hills nonprofit organizations. “Helping You Help Others” was created by the firm’s nonprofit industry team and provides recipients with eight hours of tax, accounting, audit or consulting services at no charge. The team will also contribute a half day of volunteer service to the organization
Prairie Hills Transit, which provides public transportation to people of all ages, was selected as the program ’ s first recipient. The organization was selected through an application process that detailed its mission, goals, accounting and volunteer needs.
Door manufacturer unveils new name, new facility
West Fargo, N D -based door manufacturer Midland Bi-fold Doors has changed its name to Midland Door Solutions in order to better reflect its core capabilities and products as well as its growth into architectural applications, the company says It has also opened a new 40,000-square-foot production facility and warehouse in West Fargo to accommodate its growing product line and customer base. The new facility is located near its sister company, Midland Garage Door Manufacturing Co
18 Prairie Business Magazine September 2014 |PRAIRIE NEWS|
SDSU named Innovation, Economic Prosperity University
The Association of Public and Land-grant Universities has designated South Dakota State University as an Innovation and Economic Prosperity University The honor recognizes universities for their work with public and private sector partners to support economic development through activities including innovation and entrepreneurship, technology transfer, talent and workforce development, and community development.
SDSU was one of 14 universities to receive the designation this year A total of 30 public universities hold the honor throughout the U.S.
Hess Corp. gives $5 million to UND
Hess Corp has donated $5 million to the University of North Dakota’s College of Engineering and Mines and the UND Alumni Association and Foundation. The North Dakota Higher Education Challenge Fund matched $2 5 million, bringing the total to $7 5 million
Funds will be used to support laboratories that will be included in the construction of UND’s new Collaborative Energy Complex The complex will feature more than 30,000 square feet of research/teaching labs and customized spaces for students and industry, as well as provide space for the Petroleum Engineering and the Institute for Energy Studies programs and the Hess Innovation Lab
The entire project is expected to cost $15 5 million.
DCN’s North Dakota Fiber Optic Network
KLJ has operations in 23 different locations employing over 750 professionals. With KLJ’s signi cant growth, reliable network connectivity is a priority. DCN consistently provides outstanding services to meet KLJ’s growing needs as a corporation. DCN’s services give KLJ the capability to directly collaborate between of ces via their Ethernet connections utilizing DCN’s ber network.
“DCN has proven to be a trusted advisor by providing quality service and expertise for our corporate technology needs for more than 10 years. The ability to work on our systems remotely has allowed efficient network management of KLJ’s 23 office locations, allowing us to grow and maintain a collaborative working environment throughout our corporation and respond quickly to client needs through stable internet connections and high upload speed.”
19 w w w prairiebizmag com |PRAIRIE NEWS|
DCN Owner Company Fiber DCN Fiber Optic Backbone DCN LateralDCN Network Node
3901 Great Plains Drive South,
ND • 800-814-3333 4202 Coleman Street, Bismarck, ND • 877-258-2124 Wide Area Network | High Speed Internet | Data Storage Carrier Ethernet Service | Co-location Facilities www.DakotaCarrier.com
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“The quality service DCN provides has fostered a unique partnership between DCN and KLJ.”
Kenneth Redinger, Information Technology Director, KLJ Dakota Carrier Network Customer
Benchmark Foam names new president
Doug Block has joined Benchmark Foam in Watertown, S.D., as president and will be responsible for the strategic planning and growth of the company while overseeing all operations, including sales, marketing, manufacturing, accounting and quality. He will replace Tom Devine, who will retire in September 2015
Block has more than 15 years of experience in manufacturing management, including serving as an operations manager and vice president while simultaneously owning and operating a sign installation company
Leingang named BSC dean
Daniel Leingang has been named dean of academic affairs at Bismarck (N D ) State College, replacing longtime dean Janelle Masters, who retired in June
Leingang joined BSC in 2000 as an associate professor of mathematics. He was named chair of the geomatics, engineering and mathematics department in 2005 and has earned national and regional awards as outstanding adviser to BSC’s chapter of Phi Theta Kappa honor society, as well as several faculty excellence awards He is currently completing his doctorate in educational leadership with a higher education focus from the University of North Dakota.
Puszynski to serve as SDSMT vp, research
Jan Puszynski has been appointed vice president for research at South Dakota School of Mines and Technology He joined SDSMT in 1991 as a chemical engineering professor and has also served as a college dean. He has extensive research experience, serving as principle investigator on projects funded by several federal agencies, and has been a leader in developing research relationships between SDSMT’s chemical and biological engineering department and the U S military
In 1999, he established Innovative Materials and Processes LLC, a company that has grown with direct contracts and projects funded by the U S Navy and U S Army
He has published more than 175 scientific papers, co-authored several patents and is the recipient of numerous national and international awards
Noridian board appoints Huckle CEO
Nordian Mutual Insurance Co ’ s board of directors has appointed Tim Huckle as president and CEO He had been serving as interim CEO since May NMIC does business in North Dakota as Blue Cross Blue Shield of North Dakota.
Huckle has 29 years of experience with NMIC, serving most recently as chief operating officer of BCBSND The board credited his experience, commitment to the company ’ s long-term goals, as well as his success in maintaining business continuity and performance through his time as interim CEO, as reasons to appoint him as the company ’ s new leader.
Williston economic development leader to retire
Tom Rolfstad, Williston, N.D.’s longtime economic development leader, has announced plans to retire Rolfstad served as executive director for Williston Economic Development from 1979 to 1985 and from 1991 until this year.
Shawn Wenko, deputy director of WED, is expected to replace Rolfstad Wenko joined the organization in 2008 with the expectation that he would move into the leadership role upon Rolfstad’s retirement
Palm, Winskowski named to new FCC roles
Detroit Lakes (Minn ) Tribune and Becker County (Minn ) Record Publisher Dennis Winskowski is now also serving as publisher of the Park Rapids Enterprise He succeeds Rory Palm, who has been named publisher of the Daily Republic in Mitchell, S.D. All of the newspapers are owned by Fargo-based Forum Communications Co , which also owns Prairie Business magazine Winskowski previously served as publisher of the Enterprise from 1985 to 1986. He currently oversees a group of newspapers for FCC known as the Lakes Group, which includes Park Rapids, Detroit Lakes, Perham, Wadena, Alexandria and Morris, Minn.
Palm served as publisher of the Enterprise since 2007 He also served as general manager of the River Falls (Wis.) Journal for nine years as well as director for the group of newspapers that included the River Falls Journal
20 Prairie Business Magazine September 2014 |PRAIRIE PEOPLE|
Doug Block
Tom Rolfstad
Daniel Leingang
Tim Huckle
Jan Puszynski
Rory Palm
Barbara Bang NDSCS dean appointed NCWE president-elect
Barbara Bang, dean of technologies at North Dakota State College of Science, has been named president-elect of the National Council for Workforce Education Her one-year term as president-elect began July 1
NCWE provides a national forum for college administrators and faculty, as well as business, labor, military and government representatives to affect and direct the future role of two-year and other post-secondary institutions in workforce education and economic development
Bang has previously served in both the vice president for communication and regional director roles for the group.
Buus, Budan join NDSU Research Park board
Jim Buus and Thomas Budan have been named to the North Dakota State University Research and Technology Park board of directors.
Buus is the manag ing broker and coow ner of Goldmark Schlossman Commercial Real Estate Ser v ices Inc in Fargo He also ser ves as president of the Fargo Moorhead Angel Investment Fund and has ser ved on the adv isor y board of the research park’s business incubator
Budan is the general manager of John Deere Electronic Solutions Inc. in Fargo. He serves on the boards of the United Way of Cass Clay and the Greater Fargo Moorhead Economic Development Corp.
21 w w w prairiebizmag com |PRAIRIE PEOPLE|
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Child care as a recruitment tool
Digi-Key incentivizes child care to attrac t evening shif t workers
BY KRIS BEVILL
Since its launch in 1972, Digi-Key Corp. has grown to become the sixth largest electronic component distributor in the world It currently employs more than 3,000 people at its headquarters in Thief River Falls, Minn., and a recently opened location in Fargo, N D, but it's not enough The company is constantly hiring to meet its sales growth it added 300 workers just in the first half of 2014 and hopes to fill 150 more positions by the end of the year but finding workers in Thief River Falls, where the population is less than 10,000, unemployment rates are low and job openings are plenty, means the company has had to get creative A busing program brings between 125 and 130 workers to Thief River Falls from East Grand Forks, Bagley and Crookston, Minn , and has potential to expand
22 Prairie Business Magazine September 2014 |BUSINESS DEVELOPMENT|
Workers pack parts at Digi-Key Corp ’s Product Distribution Center in Thief River Falls, Minn. PHOTO: DIGI-KEY CORP.
and widen the company ’ s reach even further throughout northwest Minnesota, according to Rick Trontvet, vice president of human resources The company also offers top-notch benefits, an $850 sign-on bonus for employees who relocate from outside a 60-mile radius of Thief River Falls and a $500 bonus for employees who bring in a new hire who stays for six months. Most recently, the company launched a plan to subsidize child care providers who offer their services to DigiKey’s evening shift employees.
Trontvet says the child care incentive was developed after potential employees said they were unable to accept evening-shift positions due to the lack of child care availability. The company decided to offer potential providers a stipend of $75 per child per week if they would care for Digi-Key employees’ children between the hours of 10:30 a.m. to 11 p.m. at a reasonable rate. “We give them $75, but we ask them to charge the Digi-Key parents a low and very market-competitive rate, especially for evening child care, ” Trontvet says.
Two in-home providers expressed interest soon after learning of the incentive, according to Cathy Fynboh, Digi-Key staffing manager. Digi-Key expects to roll out the child care program this
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month with a slow ramp up as employee demand and provider interest increases Fynboh says potential child care providers will be interviewed by the company before being accepted into the program. Approved providers will then be introduced to employees, who will decide if the provider is a right fit for their children
Heidi Hagel Braid, regional director for First Children’s Finance, lead organization for Greater Than Minnesota, a statewide initiative aimed at creating rural childcare solutions using economic development strategies, applauded Digikey’s efforts to improve child care options for its employees by offering financial incentives for providers “In the business of child care, where profit margins are slim to none, that extra cash is an incredibly powerful incentive for providers,” she said in a statement. “What Digi-Key is providing is truly a win-win for employees, child care providers, the company and the community as a whole ”
Trontvet says he anticipates at least half of the child care openings created through the program will be filled by new hires “We’re not just marketing this to our employees whose children may be staying with grandparents or friends at this particular point in time, but we ’ re also marketing it to the region of candidates who are out there to say that we ’ re an
employer who provides this incentive If you come to work for us, we can help you out,” he says
One element still missing from Digi-Key’s ability to recruit and retain employees in the immediate area is housing Thief River Falls and the entire northwest Minnesota region is short on apartments and rental housing, and it is hampering the recruitment efforts of many of the area ’ s large employers Trontvet says Digi-Key has teamed up with city officials and near by manufacturers including Mar v in Windows, Polaris, Arctic Cat and Central Boiler to increase awareness among real estate developers to the opportunities available in the region Additionally, Pennington County, of which Thief River Falls serves as capital, is in the process of adding a full-time economic development director whose top priority will be attracting housing prospects to the area.
“We’ve been trying to do everything we can as a company to encourage developers to come and take a chance on Thief River Falls,” he says. “We’ve got a very aggressive growth plan and we think that we will be able to fill apartment buildings with employees for years and years to come ” PB
Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com
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24 Prairie Business Magazine September 2014 |BUSINESS DEVELOPMENT|
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Construction | Industrial | Utility
The Best Places to Work
Company culture determines its likeability among employees
BY KRIS BEVILL
Studies have shown when companies create great workplace cultures they enjoy lower employee turnover, better productivity, improved financial performance and higher-quality job applicants. But what makes a great culture?
Tonya Stende says when she walks into a company that has a great culture, she can just feel it The president of Dale Carnegie Business Group of North Dakota has been spending an increasing amount of her time recently advising companies on creating or improving culture initiatives as they realize that a great culture could give them an edge in workforce recruitment and retention In fact, culture planning is the fastest growing area of business at Stende’s office. In addition to private services, Stende says the company also regularly holds public events, including a recent workshop devoted to exploring how small businesses can attract and retain the best talent by developing a culture of employee engagement.
“I think strong culture is one of the most sustainable competitive advantages a company can have,” she says
While every company ’ s culture values are unique to that business, in general, company culture can be described as the way people treat each other in the workplace
“Culture is: How do we work together, how do we collaborate, how do we share ideas, how do people have a voice?” Stende says
Stende says the first course of action for companies interested in developing a culture initiative is to ensure leadership is fully committed to the idea “There has to be 100 percent buy-in from the top leaders of the organization,” she says, adding that while most company leaders will say they believe culture is important, “saying and doing are two different things ”
Committing to Culture
Business COMPANIES
as well as dozens of newspapers, websites, television and radio stations and commercial printing plants throughout the northern Plains, began developing a culture initiative in 2013 under the direction of Bill Marcil Jr , president and CEO of FCC and publisher of The Forum of Fargo-Moorhead. He says that as he was preparing to take over leadership of the company last year, he evaluated the future of FCC and quickly determined that culture was the single most important aspect of its future success.
With assistance from the Dale Carnegie group, FCC created core culture values, conducted an employee engagement survey, used the results to develop action plans for identified areas of disengagement, and formed employee culture committees at each location to lead the implementation of the initiative in site-specific ways
Marcil says it was important to him to staff culture committees with non-managers and empower them to make autonomous decisions for each location. “We felt that would help spread [the culture] better,” he says “To be successful, we need to all feel engaged and that we are all in this together With that, we will be more competitive as we move forward, no question.”
Stende agrees that fully engaged employees are essential to the success of a culture initiative and that in order for employees to be engaged they need to feel included and have a voice in the culture-making process “The more you communicate, the more informed employees are and the more engaged they become,” she says
When employees are engaged, it also makes it easier to hold them accountable to the initiative’s standards. Accountability plays a big role in successful cultures and can be addressed through properly communicating the culture values of a company Stende says her company often helps companies develop leaders and teach them to engage workers and communicate what the culture values mean so that they understand what is expected of them and that they will be held accountable for upholding
26 Prairie Business Magazine September 2014
Forum Communications Co., which owns Prairie Business magazine
|CULTURE| 50 BEST 2 0 1 4 Pr air ie
those values. “You can say ‘be respectful,’ but what does that mean? It’s different from one person to another so everyone needs to have that common message, ” she says
Companies interested in creating or improving their culture must be prepared to make a long-term commitment to the plan Stende says initial implementation fo a company culture can take up to three years After that, she recommends employee satisfaction surveys be conducted annually so that tweaks to the culture can be made as needed. “It takes time and it takes investment and development in their people,” she says “That’s the thing with culture is when companies go down this road, it’s basically a lifetime commitment. It can’t be a shot in the arm or flavor of the month. It has to be in all messages that leaders, especially from the top, deliver ”
For those leaders willing to put in the work, the rewards can be unlimited Dale Carnegie research has shown that engaged employees outperform other organizations by up to 202 percent and are 87 percent less likely to leave the company Further, while pay increases are certainly always appreciated, higher pay rarely tops the wishlists of employees when asked what improvements could be made to make their jobs better. Rather, they commonly cite issues that culture initiatives could address, such as relationships with their managers, belief in leadership and pride in their workplace
Prairie Business magazine recently invited employees at for-profit companies large and small throughout the northern Plains to visit the magazine's website and complete an anonymous Employee Engagement and Satisfaction Survey to rate their employer in areas including work environment, employ-
Top 25 Large Employers
Gate City Bank
Headquarters: Fargo, N.D.
Employees: 500
Description: Since its establishment in 1923, Gate City Bank has grown to include 34 retail branches in 19 communities throughout North Dakota and western Minnesota The bank provides financial planning, online and mobile banking, mortgage, personal and business loans and unique local servicing for loans Its mission includes a commitment to make the lives of its customers and employees better by investing in them and their communities.
Website: gatecitybank com
ee benefits and employee happiness. Nearly 2,000 employees, representing more than 100 companies, completed the survey in an approximately onemonth window The survey included a question that asked employees what their employer does to make it a place where people want to work. The responses were telling and echo Stende’s findings regarding communication and a desire to feel valued
“Consistent appreciation, collaborative camaraderie and an energizing spirit greet me every day when I come to work,” one employee stated.
“My supervisors always keep employees in the loop of events, make sure to reward good work and are just overall great people to know as well as work for,” another wrote.
“More than anything it is a values-based organization where the values are clear and the leadership team lives those values,” another employee said “The company is fairly young and still developing many processes, but overall the priority items are getting done and items identified by the team members are discussed, prioritized and dealt with as time permits ”
Comments in completed surveys were reviewed by Prairie Business staff and weighted for the number of surveys received per company, giving consideration to the approximate number of employees at each company Companies were also divided into two categories large companies comprised of 100 or more employees and small companies of 99 or fewer employees. The following list recognizes the top 50 companies deemed by their employees to be among the best places to work in the northern Plains
It’s not unusual for Gate City Bank CEO Steve Swiontek to participate in the bank’s various culture events In fact he’s usually the first to embrace new initiatives, according to bank executives. So it was no surprise when he ditched the typical bank executive suit-and-tie one Friday in late July in favor of a T-shirt, shorts and what he described as “beach shoes” in support of companywide Casual Resort Dress Day. But it certainly made the day more entertaining for the rest of the company, which was his goal “It’s fun to do something like that from a bank perspective, but it’s those little things that make a difference as well,” he says Gate City Bank’s culture is centered around its philosophy of being an employer of choice with employees of choice As a result, the bank enjoys a much lower attrition rate compared to similar companies both regionwide and on a national comparison, he says Community involvement and charitable giving are strongly emphasized, at both the corporate and individual levels At the corporate level, the bank contributes 5 5 percent of its pretax income to philanthropic giving every year A committee of bank employees determines how to distribute the donations. On the individual level, employees are encouraged to participate in volunteer projects, locally and abroad The bank offers a mission leave, which allows employees up to 10 days of paid time off for mission trips and provides them with up to $500 to be used toward travel expenses As part of his commitment to leading by example, Swiontek was the first Gate City employee to utilize mission leave for a trip to Jamaica to help underprivileged children and the homeless The bank also makes financial contributions to nonprofits where its employees volunteer more than 10 hours and provides matching donations up to $500 for employees’ financial contributions to nonprofit organizations Last year, Gate City Bank employees donated more than 16,000 hours of time to volunteerism
Aside from its commitment to giving, Gate City strives to create a fun environment for employees and to involve them with the bank’s decision-making So-called “tiger teams” are tasked with identifying ways to continually enhance the bank for the betterment of its employees and customers. One example of which is the recently redesigned corporate space at the bank’s downtown Fargo headquarters to promote collaborative working, which has been identified as a draw for millennial workers. Swiontek, who has spent nearly 40 years at the bank, says he will continue to make every effort to embrace positive change for employees and customers. “I want to make sure that I never come to work on a daily basis and say, ‘Well this is the way we’ve always done it so we have to keep it that way’”
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Gate City Bank employees (from left) Hillery Tomaszewski, Karin Rudd and Jaime Kelsch volunteer at Midwest Kids Fest in Fargo, N.D.
PHOTO: STACEY SCHOMMER/GATE CITY BANK
National Information Solutions Cooperative
NISC takes to heart the mantra that employees are the most important asset for any IT company and has made treating its employees well a company mission An employee-driven culture has resonated with its workers, who in turn respond favorably to the cooperative model and dedicate their efforts to treating their customer-owners with the best service possible
“We can’t take credit in management for fostering and developing the culture,” says Kari Reichert, vice president of people services “It really is built by the employees who live and breathe it every day.”
National Information Solutions Cooperative currently employs more than 300 people at its Mandan, N D , location and is continuously adding staff to meet demand PHOTO: NISC
NISC’s six shared values integrity, relationships, innovation, teamwork, empowerment, personal development were created by the employees when the cooperative was created in 2000 and it’s not unusual to see the list of values displayed in cubicles or hung around the office Four employee-staffed committees regularly schedule events including social gatherings and volunteer outings throughout the year One of the committees, the Benevolence Committee, oversees a fund fed annually by employees’ voluntary payroll deductions which can be anonymously accessed by any employee who happens to need a financial helping hand for anything from house payments to medical bills About half of NISC’s employees contributed to the fund in the most recent fiscal year
“We’re very hush about it, but it really does great things,” Reichert says
Headquarters: Lake Saint Louis, Mo.
Employees: 1,000
Description: National Information Solutions Cooperative was formed in 2000 as a consolidation of Central Area Data Processing Cooperative and North Central Data Cooperative, both of which were formed in the mid 1960s NISC is an IT cooperative that develops, implements and supports software and hardware solutions for its members/customers. The company supports more than 700 independent telephone companies, electric cooperatives and other public power entities from its facilities in Mandan, N D ; Lake Saint Louis, Mo ; Cedar Rapids, Iowa, and Shawano Wis.
Website: nisc coop
Border States Electric
Border States Electric's employee-owners participate in a community service project at Great Plains Food Bank in Fargo, N.D.
At the corporate level, the cooperative regularly arranges events such as a recently held wellness week At the Mandan, N D , location, which currently employs about 350 people, staff members also have access to an on-site fitness center and dedicated game room, which is often used for impromptu employee-planned game nights
Reichert says one of the reasons NISC’s culture thrives is because leadership recognizes and emphasizes its important role in the company’s success CEO Vern Dosch regularly meets with staff members for monthly “Conversations with the CEO” lunches, employs an open-door policy and welcomes questions and input from staff members during monthly all-hands web meetings “He takes [culture] very seriously,” Reichert says “Vern is a champion for our employees and recognizes that we need our employees ”
NISC also makes a point to support the work-life balance and continued development of its employees It encourages them to change roles and divisions as interests change throughout the course of their career and offers various mentoring programs and tuition reimbursement for continued learning. Employees also tout NISC’s flexible work arrangements as one of its primary benefits The cooperative currently has at least 60 virtual employees around the country and allows all employees a flexible work schedule.
“We know that our best employees also have full lives, balanced lives, and we want to support that,” Reichert says. “One of the easiest ways to make this a great place to work is to work with people, and scheduling is a big thing We are very flexible ”
Border States Electric has been 100 percent employee owned through its Employee Stock Ownership Plan for 30 years and many employees cite that as a primary reason why the company is a great place to work
“Employee-ownership provides a culture that goes beyond the daily tasks of our positions; it gives us a connection to something more, and motivates us to work hard to build something together,” says CEO Tammy Miller “Our ownership culture is truly the reason for our growth and success”
Employee owners are expected to be decisive, creative and work like an owner of the company, Miller says Because everyone is an owner, everyone is treated with equal dignity and respect and is given opportunities to advance their careers in any number of the company’s 62 locations throughout the U S Enhancing employee-owner development and performance is one of the company’s strategic goals. A Management Trainee Program exposes participants to different areas of branch operations as well as the company as a whole with a focus on growing the individual’s leadership skills and exposing them to projects or industry events which open up opportunities for career advancement
Headquarters: Fargo, N D
Employees: 1,600
Description: BSE supplies products and services to construction, industrial and utility customers. The 100 percent employeeowned company is the eighth largest electrical distributor in the U.S. as ranked by Electrical Wholesaling magazine. The company employs more than 1,600 people at 63 branches in 14 states.
Website: borderstates com
BSE also champions actionable goals for its employee-owners, an open-book management style with consistent communications, clear levels of authority, personal financial rewards and fun in the office Miller says she prioritizes company culture because it not only results in exemplary customer service, it also drives employees to be more productive than average. “Our positive culture motivates our employee owners to go above and beyond to execute a very aggressive strategic plan,” she says “It is extremely powerful to see the impact of employee ownership every employee is an entrepreneur; they are empowered, have clear levels of authority and are expected to be creative and decisive in finding customer solutions.”
28 Prairie Business Magazine September 2014
(continued on page 30)
PHOTO: BORDER STATES ELECTRIC
34 locations in North Dakota and western Minnesota. We’re ready to make your life better. Contact us today at (800) 423-3344 or visit gatecitybank.com. Member FDIC WE HAVE YOUR RATE. NOW GO GET YOUR RIDE. LOANS 1.95 % APR* AS LOW AS LOANS % APR* AS LOW AS 3.50 *Discounted rate available with automatic payment plan using a Gate City Bank checking conditions may apply.
Advanced Engineering and Environmental Services Inc.
Headquarters: Grand Forks, N.D.
Employees: 250
Description: AE2S is a specialized civil/environmental consulting engineering firm that provides professional services and a unique brand of extreme client service to clients in the upper Midwest. The firm’s primary services are water, wastewater and water resources system consulting It also offers a variety of traditional consulting services as stand-alone services or in support of its primary services and provides value-added services, such as assistance with state and federal funding programs, asset management, public relations and information technology
Website: ae2s.com
AVI Systems
Headquarters: Minneapolis
Employees: 400
Description: Founded in 1974, AVI Systems is an audiovisual, telepresence and broadcast systems integrator focused on building professional solutions for business, commercial, educational and government clients With 17 offices and over 400 employees throughout the upper Midwest and on the West Coast, the company has both a regional presence and a nationwide scope of operation
Applied Engineering Inc.
Headquarters: Bismarck, N.D.
Employees: 105
Description: Applied Engineering is an employee-owned engineering and technology company that combines talent and technology to offer custom solutions to fit customers’ unique challenges. Founded in Fargo, N D , in 1986 and headquartered in Bismarck, with additional offices in Brooklyn Park, Minn , Sioux Falls, S D , Eau Claire, Wis., and Addison, Texas, the firm provides engineering and manufacturing consulting services, IT and custom programming services, and large format digital printing services It also sells and supports industry-leading design and manufacturing software and IT infrastructure.
Website: go-applied com
Bartlett & West
Headquarters: Topeka, Kan.
Employees: 380
Description: Founded in 1951, Bartlett & West is 100 percent employee owned and has 14 offices in 10 states, including offices in Bismarck, N D , Sioux Falls, S D , and Billings, Mont The firm provides engineering, technology solutions and other professional services to a wide range of clients. The Bismarck office employs more than 100 people and serves local and regional municipalities, water districts, energy companies, land developers, private industry and others
Website: avisystems.com
Bilfinger Westcon Inc.
Headquarters: Bismarck, N.D.
Employees: 1,400
Description: Bilfinger Westcon is an industrial general contractor specializing in industrial processing and manufacturing plants including gas plants, refineries and power plants Westcon was founded in Bismarck in 1981 Over the next two decades the company expanded to include offices in Utah, Iowa and Ohio. In 2012, Westcon joined Bilfinger Industrial Services and is currently known for its work in industrial markets throughout the U.S.
Website: westcon.bilfinger.com
BNC National Bank
Headquarters: Bismarck, N D
Employees: 260
Description: BNC National Bank is a subsidiary of BNCCORP Inc. The bank operates community banking, mortgage banking and wealth management in Arizona, Minnesota and North Dakota and also conducts mortgage banking in Illinois, Kansas and Missouri. BNC is dedicated to providing banking and wealth management services to businesses and consumers in its local markets
Website: bartwest.com
Dakota Supply Group
Headquarters: Fargo, N D
Employees: 650
Description: For more than a century, Dakota Supply Group has made a name for itself as a full-line distributor of products and services for electricians, plumbers, HVAC/R technicians, contractors, communication companies, utilities and more. DSG’s employee owners regularly participate in training sessions and seminars to stay informed of the latest product technology developments and utilize that knowledge to better serve their customers’ needs. The company has various locations throughout the Dakotas, Minnesota, Wisconsin and Montana
Website: bncbank.com
Website: dakotasupplygroup.com
30 Prairie Business Magazine September 2014
“You have the opportunity to speak with upper management on a daily basis.”
– Bilfinger Westcon
(continued on page 34) (continued from page 28)
Eide Bailly
Headquarters: Fargo, N D
Employees: 1,400
Description: Founded in 1917, Eide Bailly LLP is a regional, top 25 certified public accounting and business advisory firm with diverse talents, industry experience and service specialties Clients are served from 24 offices in 11 states and enjoy access to 1,400 professionals. Clients benefit from the core services of audit and assurance and tax, as well as expanded services including accounting services, cost segregation, employee benefits, enterprise risk management, financial services, forensic and valuation, health care reform, international services, technology consulting, transaction services and wealth management.
Website: eidebailly.com
First International Bank & Trust
Headquarters: Watford City, N.D.
Employees: 399
Description: Established in 1910, First International Bank & Trust is a full-service financial institution. It offers a wide array of products and services including personal and business banking, consumer, commercial and ag lending, mortgage services, personal and commercial insurance, trust and investment services The bank has been steadily expanding across the upper Midwest and Arizona since 1990, making good on its mission of “helping dreams come true one customer at a time.”
Website: firstintlbank com
Integrity Windows and Doors
Headquarters: Fargo, N D
Employees: 700
Description: Integrity Windows and Doors is the world’s largest and most experienced manufacturer of windows and doors made with Ultrex a state-of-the-art pultruded fiberglass material Its heritage as part of the Marvin family of companies is built on more than a century of excellence and expertise. From its base in Fargo, the company offers a comprehensive line of window and door products that are “Built to perform” and backed by firstclass customer service
Website: integritywindows.com
KLJ
Headquarters: Bismarck, N.D.
Employees: 750
Description: Since 1938, KLJ has provided multidisciplinary engineering-based solutions for national, large-scale operations. As an employee-owned firm with a focus on innovation and hard work, KLJ helps its clients succeed through its strong regional connections, in-depth local knowledge, responsive personal service, and by developing lasting infrastructure that responds to the social, civic and economic needs of communities
Fisher Industries
Headquarters: Dickinson, N D
Employees: 725
Description: Fisher Industries is a multi-faceted business serving all aspects of the aggregate processing industry. The family-owned company, in business since 1952, is on its second-generation of family leadership and has grown from a small business on a family farm to a large company with offices and operations in 12 states. It has also expanded over the years from a single operation to a complete “family” of businesses that operate under the Fisher Industries name. The company is known for pursuing “the tough jobs” and successfully tackling them.
Website: fisherind.com
Houston Engineering
Headquarters: Fargo, N.D.
Employees: 179
Description: Houston Engineering is a multidiscipline engineering consulting firm providing civil, survey, environmental, water, GIS and web application services from six offices in North Dakota and Minnesota.
Website: kljeng com
Website: houstoneng com
Intelligent InSites Inc.
Headquarters: Fargo, N D
Employees: 110
Description: Intelligent InSites has its sight set on transforming health care through the application of its open, real-time health care platform, which automatically collects and processes data from multiple sources such as EHRs, financial systems, building systems, sensory and real-time location systems, mobility solutions and other IT solutions – then provides actionable intelligence to achieve cost savings, operational excellence and better care.
Website: intelligentinsites.com
Marco Inc.
Headquarters: St. Cloud, Minn.
Employees: 761
Description: Marco is a 100 percent employee-owned company that helps organizations manage their information by applying network expertise to voice, data, video and print solutions. Marco specializes in managed/hosted services, business IT services, copiers/printers, phone systems, document management and audio/video systems. It serves customers throughout the upper Midwest with offices in Minnesota, the Dakotas, Wisconsin and Iowa
Website: marconet com
34 Prairie Business Magazine September 2014 (continued from page 30) (continued on page 36)
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Headquarters: Bismarck, N D
Employees: 100
Description: Founded in 1955, NDGT provides complete residential and commercial land title and real estate closing services across North Dakota and eastern Montana Known as “The Title Team,” NDGT’s experienced professionals go the extra mile to help coordinate and complete real estate and title services for everything from mobile homes to multi-billion-dollar commercial projects The company includes nine offices in North Dakota and Montana and strives to provide the best service in every market in which it participates.
Website: thetitleteam.com
Schuneman Equipment Co.
Headquarters: Milbank, S D
Employees: 200
Description: Schuneman Equipment is a family-owned, authorized John Deere dealership with six stores in South Dakota and Minnesota In business since 1979, the company focuses on providing a premium level of personalized services by employing and developing people who can deliver the highest level of expertise in the most timely and efficient manner The company’s team culture emphasizes integrity, financial success, adaptability, professionalism and accountability.
Northern Contours
Headquarters: Fergus Falls, Minn
Employees: 232 (Fergus Falls) 501 (companywide)
Description: Since its inception in 1992, Northern Contours has provided innovative, design-driven solutions and products across industries including kitchen, bath, home organization, store fixtures, health care and contract furniture. Its production facilities combine expertise in several applications to produce quality components with reliable and timely deliveries Instilled with a passion for complete customer satisfaction, employees continually strive to provide flexibility and friendly service.
Website: northerncontours.com
QBE NAU
Headquarters: Ramsey, Minn.
Employees: 650
Description: QBE NAU is a leading crop insurance company providing the financial strength necessary for today’s environment. The company has earned a reputation for providing superior customer service and leading the industry in technology, offering innovation solutions for its customers including iPad apps, map-based products and claims processing and policy quoting applications.
Website: naucountry.com
Vogel Law Firm
Headquarters: Fargo, N D
Employees: 100
Description: With attorneys in Fargo, Bismarck and Williston, N.D., and Moorhead and Minneapolis, Minn , Vogel Law Firm offers sophisticated legal representation to businesses and individuals throughout the Dakotas, Minnesota and Montana.
Website: schunemanequipment com
WCCO Belting Inc.
Headquarters: Wahpeton, N.D.
Employees: 200
Description: WCCO Belting manufactures specialized rubber products for agricultural and industrial businesses worldwide. The company is known for its dedicated employees, strong engineering capabilities, global sourcing talent, vertical integration, and for producing the highest-quality rubber belting in the world.
Website: vogellaw com
3M
Headquarters: Brookings, S.D.
Employees: 900
Description: 3M Brookings is the first and largest manufacturing plant supporting 3M’s worldwide health care business. For more than 43 years, the facility has produced complex medical dressings and tapes, surgical drapes, biological indicators and food safety products. The plant currently produces more than 1,700 different product SKUs. A focus on continuous improvement has allowed the company to achieve its vision of “3M innovation improving every life.”
Website: wccobelt.com
Website: solutions.3m.com/wps/portal/3M/en US/Brookings/Plant/
36 Prairie Business Magazine September 2014
“
They work within the community to make the city a desirable place to live.”
(continued from page 34)
– Northern Contours
37 w w w prairiebizmag com Professionals you need, people you trust. N282812 E Engineering Your World From the Ground Up 0 0 1 0 4 0 7 9 8 r 1
Top 25 Small Employers
Scott Bintz says he believes creating a good culture within his company is simply “the right thing to do” The founder and CEO of RealTruck com says he committed early on to the belief that if he could create a great company culture, everything else would work out as well “So far, that’s proving to be correct,” he says.
The company has been growing at an incredible pace over the last two years The number of employees has nearly doubled since 2012 about 70 people currently work at the company’s two locations in Jamestown and Fargo and this year’s sales are on track to blow 2013’s record-breaking year out of the water. Bintz expects sales this year to end at about $40 million, compared to $28 5 million in 2013
Headquarters: Jamestown, N.D.
Employees: 72
Description: RealTruck com is an online retailer specializing in aftermarket pickup-truck accessories. The e-commerce enterprise, which placed 2,322 on the 2013 Inc. 5000 list and was recently named the 14th-fastest growing U.S. e-commerce website by Internet Retailer, offers over 500,000 accessories for all of the top pickup truck and sports utility vehicle makes and models on the market today. Driven by a unique set of guiding principles, RealTruck's mission is to improve people’s lives and vehicles
Website: realtruck.com
Stoneridge Software
RealTruck’s six guiding principles deliver more, transparency rocks, improve, take risks, include fun, be humble influence the way staff members engage with each other and with the company’s customers and partners The principles are applied in a variety of ways throughout the company At the Fargo office, for example, employees gather at the beginning of the week to spin a wheel, known as the Wheel of Distraction, which contains each of the company’s six principles Whatever principle the wheel lands on becomes the focus of a group activity each Friday Activities range widely from wiffle ball games on the front lawn to trash collection and are meant to build camaraderie while providing a fun distraction at the end of the work week
Employees at RealTruck enjoy a number of other unique perks, including lunch-andlearns with their team manager, paid time off to take part in civic/service group activities and office potlucks with their favorite foods to honor their birthdays. They are also encouraged to acknowledge co-workers’ professional and personal accomplishments during company meetings and are rewarded for doing so.
As his company continues to grow Bintz says he will adhere to his philosophy of hiring for culture-fit first, skillset second to maintain the unique culture that has already proven to be a valuable recruitment tool and contributor to the company’s rapid success “It’s important that we have the right people in the truck in the right seats,” he says
Headquarters: Barnesville, Minn
Employees: 33
Description: Stoneridge Software sells and services Microsoft Dynamics AX and Dynamics NAV solutions for customers looking for a flexible, comprehensive business platform These Microsoft Dynamics solutions cover industry specific needs like: lean, discrete or process manufacturing, inventory and distribution, professional services, plus the core functions like finance, human resources and payroll
Website: stoneridgesoftware.com
Flexibility, a collaborative work environment and the willingness from management to foster those amenities are the top reasons why both employees and leadership say Stoneridge Software is a great place to work.
“People have a lot of flexibility and freedom in their working style,” says Eric Newell, company cofounder and president “We trust our people to be able to go to their kids’ events during the day or whatever they need to do, and still get the job done”
Since its launch in 2012 with just one employee in tiny Barnesville, Minn , Stoneridge has grown to a staff of more than 30 Many of the company’s employees work remotely from their homes in Fargo and elsewhere, so Stoneridge promotes collaboration by hosting quarterly get-togethers for the entire company, frequent dinners and a weekly all-hands call, where employees have the opportunity to give kudos to coworkers, update others on projects and share new business opportunities with the rest of the team.
Management also emphasizes individual long-term success as part of a team effort rather than setting singular employee goals.
The company recently relocated its headquarters to a larger space in downtown Barnesville. In addition to providing more room for its growing staff, the new space Barnesville’s old City Hall provides a unique office setting for Stoneridge employees and a second chance for a historic building Built in 1899, the former Barnesville City Hall is listed on the National Register of Historic Places and was renovated through a joint effort between Stoneridge and the city
Stoneridge also recently added a satellite location in Minneapolis, where most of its current customers are located, but Newell says the company has no plans to outgrow the smallcompany feel that has already served its employees and customers well.
He also intends to remain firmly rooted in Barnesville “We may or may not ever have a customer in Barnesville specifically, but it’s where we live and we like being close to our kids and the lake, so it’s worked out well for us,” he says
RealTruck.com
RealTruck com’s Fargo, N D , office staff holds weekly planning meetings in its informal and modern collaborative gathering space PHOTO: REALTRUCK.COM
38 Prairie Business Magazine September 2014
Stoneridge Software employees gather for a recent quarterly gettogether in Barnesville, Minn PHOTO: STONERIDGE SOFTWARE
(continued on page 40)
Applied Engineering would like to thank our customers and employees for making us one of the Top 25 Best Large Companies to Work for in the region!
www.go-applied.com
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Myriad Mobile
When it comes to developing culture at Myriad Mobile, the only rule is that there are no rules The millennial-age entrepreneurs who lead the company prioritize culture, but believe it should be inspired and created by everyone rather than be part of a forced policy
“Leaders in the company just naturally make those things happen,” says CEO Jake Joraanstad For example, there is no rule that says employees are only allowed to wear certain jeans on certain days, or that employees can have an adult beverage at their desk at the end of the week If someone wants to go shoeless, fine A drink at the end of the day? Sure As Joraanstad sees it, if employees are comfortable at the office, they might just stay a little bit longer than otherwise and finish whatever it is they are working on.
Myriad Mobile’s laid-back office atmosphere includes a foosball table for employee use PHOTO:
Headquarters: Fargo, N.D.
Employees: 60
Description: Ranked in the top 10 percent nationally according to size, Myriad Mobile is a premier source for mobile technology consulting, design, development and strategy At the leading edge of developing native mobile apps for iOS, Android and Windows 8 as well as mobile web apps, Myriad’s expertise helps companies transform the way they do business by helping to increase product and service offerings, streamline critical processes and expand brand awareness. In addition to its home base in Fargo, the company employs team members in Minneapolis, Chicago, Atlanta, Denver, Kansas City and Los Angeles
Website: myriadmobile com
Empowering employees to voice their opinions and offer input is a crucial element of Myriad Mobile’s overall approach to management, and one that many of its employees highlighted as a reason they enjoy working there Joraanstad says that approach has resulted in such things as an employee appreciation party held at the suggestion of a project manager who wanted to recognize the team for its hard work It also gives the company an edge in the otherwise cutthroat world of tech employee recruitment. “Hopefully we can keep that edge that lets people feel like they’re making a difference in the company,” he says “I think that will let us continue to hire what we call ‘A’ players – the best players around”
Myriad dedicates a percentage of its revenue each month to a culture budget to continuously add to its perks Culture budget funds were used recently to purchase a ping-pong table for the staff, which will take its place next to the often-used foosball table Those amenities are sure to fit in well at the company’s new headquarters in downtown Fargo, a 10,000-square-foot space that was selected deliberately to further enhance Myriad’s culture. The space, which can accommodate up to 110 people, includes an outdoor rooftop workspace for employees and its downtown location is expected to be embraced by employees, many of whom already live in that area and/or frequent downtown locations for after-work entertainment
Continuously improving and retaining its positive culture as Myriad grows is a main focus of the company’s leaders, according to Joraanstad “We know that without culture we couldn’t have the people that work here,” he says. “As long as we continue to hire people who fit the culture and are excited about what we’re doing I think it’s going to continue to be a good place to work ”
(continued on page 42)
40 Prairie Business Magazine September 2014 (continued from page 38)
MATAYA ARMSTRONG
Nominate Today! Nominate Today! Pr air ie Prairie n Business Do you know a young professional who deserves recognition? prairiebizmag.com The deadline for submissions is Oct. 17. To nominate someone, please go to prairiebizmag.com and click on the “40 under 40 Submission” tab.
41 w w w prairiebizmag com
Ackerman-Estvold
Headquarters: Minot, N.D.
Employees: 77
Description: Ackerman-Estvold is a professional civil engineering and architectural consulting firm that serves public and private clients throughout the upper Midwest in the areas of planning, design and construction services. Services include transportation and traffic engineering, land planning and development, municipal engineering, water resources, construction engineering, GIS, architecture and landscape design.
All-Terrain Grounds Maintenance Inc.
Headquarters: Fargo, N.D.
Employees: 45
Description: All-Terrain Grounds Maintenance was established in 1999 by Ryan and Jennifer Such and is the largest full service lawn/snow company in the area. The company’s four values are: team, giving back, customer experience and being real.
Website: ackerman-estvold com
Bismarck Aero Center
Headquarters: Bismarck, N.D.
Employees: 40
Description: A family business in service for nearly 25 years, Bismarck Aero Center is a 24-hour full-service fixed-based operator and one of the region’s most trusted aircraft maintenance and avionics facilities. BAC also offers pilot services, flight instruction, aircraft storage, charter brokerage and aircraft interior work The company recently expanded to include Mandan Aero Center in Mandan, N.D. Along with a strong commitment to its customers, Bismarck Aero Center plays an active role in supporting the aviation industry, local youth education and many other community causes.
Website: Bismarckaero com
Click Rain Inc.
Headquarters: Sioux Falls, S D
Employees: 25
Description: Click Rain is the largest and most experienced online marketing firm in the region, using that expertise to help organizations utilize the right mix of digital tools and strategies to make a splash on the web Employees tout the company’s unique benefits, including time off for mission trips and incentive trips for performance, as well as a company culture centered around three priorities: faith, family and work
Website: allterrainfargo com
Dawson Insurance Agency
Headquarters: Fargo, N D
Employees: 52
Description: In business for nearly 100 years, Dawson Insurance is a locally owned, independent agency that writes all forms of personal and business insurance as well as provides surety and financial services The company is committed to providing quality service to protect its clients’ financial future and manage their risks. It offers hands-on assistance, a dedicated team including an in-house safety coordinator, and a focus on long-term relationships.
Website: clickrain.com
DFC Consultants Ltd.
Headquarters: Fargo, N D
Employees: 17
Description: Founded in 1989 by Carol Rogne, DFC Consultants offers sales, implementation and support of business management software, specifically Microsoft Dynamics GP, CRM and DFC Property Management, a software solution created by DFC for housing authorities. A Microsoft Certified Gold Partner, DFC has three locations across North Dakota Along with software services, DFC offers accounting, training, programming, website development and a cloud hosting solution.
Website: DFCconsultants.com
Website: dawsonins.com
Flint Communications
Headquarters: Fargo, N D
Employees: 64
Description: Flint Communications is a full-service marketing communications company that is focused on outthinking the competition rather than outspending them Team members try to understand the deeper meaning of a company’s brand by asking the right questions and diving deep into its story to create emotional value for the audience Flint Communications’ client base includes a diverse list of businesses, industries, government entities and not-for-profit clients.
Website: flint-group.com
42 Prairie Business Magazine September 2014
"Even if I didn't work here, I'd still want to hang out with all of my coworkers every day."
(continued from page 40) (continued on page 44)
– Click Rain
43 w w w prairiebizmag com
YOUR
THEY
WE’D RATHER TALK ABOUT WHAT WE KNOW. ADVERTISING & MARKETING THAT PROVIDES PROOF OF PERFORMANCE WWW.H2M.BIZ H2M would like to thank its employees, clients and Prairie Business Magazine for being named one of the top 50 companies in the Northern Plains region.
A LOT OF FOLKS WANT TO BEND
EAR ABOUT WHAT
BELIEVE.
High Point Networks LLC
Headquarters: West Fargo, N D
Employees: 56
Description: High Point Networks is a value-added reseller of information technology providing solutions to both the SMB and enterprise level markets in the upper Midwest The company offers organizations best-in-class voice and data networking solutions, supported by the best professional services team in the region. Its solutions solve real challenges and provide measurable return on investment.
Hotel Donaldson
Headquarters: Fargo, N D
Employees: 60
Description: The Hotel Donaldson is a mission-driven, value-based, socially and environmentally conscious organization focused on creating memorable experiences for guests and teammates by celebrating its community. Located in downtown Fargo, it exhibits works of over 70 regional artists and features 17 guest suites, AAA 4 Diamond HoDo Restaurant, HoDo Lounge, private event spaces and a rooftop garden. It supports local, sustainable and organic practices whenever possible
Website: HighPointNetworks.com
H2M
Headquarters: Fargo, N.D.
Employees: 18
Description: H2M is an advertising agency with a simple purpose: to drive results for its clients. H2M believes in challenging traditional marketing solutions and looking for a better, smarter and more effective way to get results for clients The firm is guided by the belief that a marketing agency should always ask “why” and never settle for the status quo. Ultimately, H2M provides marketing solutions for its clients to drive results and, no matter how good the results, always asks how they could be improved upon.
Website: h2m.biz
Kilbourne Group
Headquarters: Fargo, N.D.
Employees: 12
Description: Kilbourne Group is a collective team committed to inspiring and supporting the revitalization of downtown Fargo. The Kilbourne Group team shares the vision of retaining and carrying forward the history of Fargo through thought leadership, the restoration of historic buildings and the creation of new buildings that honor the past while inspiring the future They believe that vibrant downtowns create smart, healthy cities.
Website: kilbournegroup.com
Website: hoteldonaldson.com
Integrity Viking Funds
Headquarters: Minot, N.D.
Employees: 44
Description: Integrity Viking Funds creates and manages mutual funds with a diverse variety of investment objectives including Viking Tax-Free Fund for North Dakota, Integrity Dividend Harvest Fund, Integrity Growth and Income Fund, Integrity High Income Fund and the Williston Basin/Mid-North America Stock Fund, which has more than $1 billion under management. All aspects of the locally and employee-owned company are handled internally and the company takes pride in contributing to its community
Website: integrityvikingfunds.com
JLG Architects
Headquarters: Grand Forks, N D , Fargo, Minneapolis
Employees: 96
Description: JLG helps clients create comfortable, inviting, exciting environments that raise productivity and lower sick days The firm seeks out opportunities to reduce, and sometimes eliminate, its clients’ operations costs and stays on budget by bringing Midwestern common-sense to its designs. With six offices in North Dakota and two in Minnesota, JLG is the largest architecture firm in North Dakota, a top 20 firm in Minnesota and ranks among the hottest firms in the country.
Website: jlgarchitects.com
Lawrence & Schiller
Headquarters: Sioux Falls, S.D.
Employees: 70
Description: Established in 1976, Lawrence & Schiller is an independently owned and operated marketing company on a mission to build its clients into market leaders. That mission drives it to go The Extra Mile, 5,280 feet, for its clients The firm is relentless in creating strategic branding and marketing plans that reach clients’ target audiences.
Website: l-s.com
44 Prairie Business Magazine September 2014
"I am challenged to think outside the box and ask questions."
(continued from page 42) (continued on page 46)
– Kilbourne Group
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NetWork Center Inc.
Headquarters: Fargo, N.D.
Employees: 54
Description: NetWork Center Inc has provided technology products, service, support and expertise to its clients since 1986 With NetWork Center’s continued commitment to proactive service, responsible innovation and dedicated support, it has become one of the leading technology solution providers, offering IT support, mobile apps, cloud computing, networking services, voice & data, and custom software development to thousands of clients across the Midwest
Nexus Innovations Inc.
Headquarters: Bismarck, N.D.
Employees: 15
Description: Nexus Innovations is a strategic technology consulting firm that provides strategic and technology solutions tailored for each client to ensure their organizational goals, information and systems requirements are met. The core purpose of the company is to help empower clients for success through strategic solutions Its employees are the company’s primary asset and their multi-faceted expertise, cutting-edge skills and entrepreneurial spirit drive the company to continually discover better ways to address clients’ needs
Website: netcenter net
Preference Personnel
Headquarters: Fargo, N.D.
Employees: 19
Description: Preference Personnel is a 100 percent employeeowned employment firm. Job seekers enjoy free assistance, confidential career searches, exposure to reputable employers and the expertise of professional staffing consultants Businesses gain access to great talent, speed up their time-to-hire, gain from the firm’s experienced staffing consultants and reduce hiring risk The firm also offers customized service plans, employment law certifications and niche staffing consultants
Website: preferencepersonnel.com
Spectrum Aeromed
Headquarters: Fargo, N.D.
Employees: 28
Description: Spectrum Aeromed designs and manufactures air ambulance equipment for all types of fixed and rotor wing aircraft in a 17,000-square-foot state-of-the-art facility at Fargo’s Hector International Airport. Founded in 1991, it has designed and developed air ambulance medial interiors for hospitals, military branches, charters and private operators, as well as executive aircraft and heads of state
Website: spectrum-aeromed com
Sterling Carpet One
Headquarters: Grand Forks, N D
Employees: 37
Description: Sterling Carpet One is a one-stop design store for both residential and commercial customers. Departments include paint, flooring, glass, acoustical ceilings, custom cabinetry, design, lighting and exterior remodeling With 15 full-time designers between the Grand Forks and Bemidji, Minn., locations, residential flooring is the company’s largest department. The lighting department is the company’s newest addition and allows its designers to add the finishing touches to the homes and rooms they design.
Website: sterlingcarpetone.com
Website: nexusinnovations com
Posi Lock Puller Inc.
Headquarters: Cooperstown, N.D.
Employees: 45
Description: Posi Lock is a gear and bearing puller manufacturer that offers manual pullers in one- to 40-ton capacity, hydraulic pullers in five- to 200-ton capacity, specialty pullers and tools Known as a leader in its industry, the company utilizes a patented steel Safety Cage that makes Posi Lock products stand out against its competition. Products are available worldwide through selected distributors
Website: posilock.com
Steamatic of the Red River Valley
Headquarters: Fargo and Grand Forks, N.D.
Employees: 40
Description: Since 1995, Steamatic of the Red River Valley has provided cutting-edge cleaning and restoration solutions to fire, water, mold and indoor air quality issues to customers from Canada to South Dakota within a 100-mile radius of its Grand Forks and Fargo offices. The company is also a licensed general contractor and provides a variety of additional services including electronics restoration, wet document drying, corrosion prevention and more.
Website: steamaticrrv.com
Summit Group Software Inc.
Headquarters: West Fargo, N D
Employees: 38
Description: Summit Group Software is a Microsoft Dynamics reselling partner focused on providing technology solutions that improve the business success of its customers Founded in Fargo in 2005, the company has grown to include more than 600 active customers throughout North America through a focus on the four core values of being passionate, collaborative, adaptive and responsible The company is 100 percent employee owned and focuses equally on strong customer engagement, employee engagement and solid business results
Website: summitgroupsoftware.com
46 Prairie Business Magazine September 2014
46 Prairie Business Magazine September 2014 (continued from page 44)
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What Employees Really Want
Sur vey shows salar y, benefits not always top priority
BY ROB SWENSON
“Everybody loves more money.”
“Very satisfied with current roles, responsibilities and employment conditions.”
“Increase my pay on a regular basis.”
“Pay and benefits would be the obvious areas of improvement.”
FEEDBACK FROM PRAIRIE BUSINESS MAGAZINE’S EMPLOYEE ENGAGEMENT AND SATISFACTION SURVEY.
“The only thing I would personally enjoy is the ability to work from home on a regular basis.”
WORK LIFE
“Continue to help employees with work-life balance.”
“I would recommend more time off.”
“Keep up to speed with technology by deploying new software upgrades (in a timely way) and purchasing smaller, faster computers.”
“Flex time instead of 8 to 5.”
THE ANONYMOUS QUOTES REFLECT SOME OF THE DESIRES OF EMPLOYEES.
“More recognition for job per formance.”
“More front-line staff and less management.”
“More frequent communication of business goals and strategies.”
“We are like every other company. We need more labor. Good labor.”
“Fewer meetings. Faster hiring processes to bring new employees on board quicker.”
48 Prairie Business Magazine September 2014 |EMPLOYEE PERSPECTIVE|
ot h i n g i s m o re a p p e a l i n g t o m o s t workers than good pay and benefits, a cco rd i n g t o u n i o n l e a d e r s i n t h e nor thern Plains.
“Wages and benefits. That’s how you attract people,” says Tom Ricker, president and secretarytreasurer of the North Dakota AFL-CIO
“If you want to attract good, long-term employees, the first thing workers look at is wages Then they look at benefits,” says Ricker, whose organization represents about 18,000 workers across North Dakota.
His view, though not universally shared by employees in the northern Plains, is popular, especially among labor leaders.
But trying to determine what typical workers in North Dakota, South Dakota and western Minnesota really want is not a precise quest. The answer depends on who’s answering the question.
An Employee Engagement and Satisfaction Survey conducted by Prairie Business magazine attracted hundreds of anonymous comments, many of which did not mention pay or benefits
The need for a good work space and up-to-date equipment are among the non-pay factors cited in multiple messages from employees. Staff shortages that increase workloads are a common complaint
Some employees would like to be more involved in setting the direction of their company or at least be kept up to date on plans Others think their employer already holds too many unnecessary and unproductive meetings.
Some workers would appreciate recognition for good performance They would like greater flexibility to work outside of their offices And some are perfectly content with their jobs.
Ricker, who is based in Bismarck, says the oilproduction boom in western North Dakota is raising the bar for employee pay and benefits in the region. Oilfield workers can earn more than $100,000 a year, but the hours are long, and the work is difficult
Ricker used to work in Gwinner, N.D., at the Doosan manufacturing plant, which makes Bobcat equipment Doosan has approximately 1,200 hourly workers plus a few hundred salaried managers, making it one of the largest, private employers in the Fargo, N D , region Travis Swanson is the current vice president of United Steel Workers Local 560, which represents hourly workers at Doosan Swanson agrees that wages are very important to workers However, funding benefits such as vacation time and retirement plans might be of even greater, long-range consequence, he says.
49 w w w prairiebizmag com |EMPLOYEE PERSPECTIVE|
N
Swanson ranks “all-encompassing benefits” as the most important issue for workers at the plant, followed by pay and working conditions.
After a probationary period of 60 days, workers at the growing Doosan plant start at about $21 an hour, which is relatively good for the area Pay and key benefits are negotiated for Doosan workers by union leaders and plant leaders. So employees are in a different situation than non-union workers in the region Most workers have to negotiate their own pay
Mark Anderson, president of the South Dakota Federation of Labor
AFL-CIO, represents approximately 8,000 workers. He points out federal statistics indicating that the productivity of American workers has increased 250 percent since 1948, but that compensation has increased only 113 percent.
“Our wages haven’t kept up with the productivity we ’ ve put out Workers want their fair share They’re entitled to it,” Anderson says “Ever ything you put on top of wages makes it more likely that person is going to stay on the job and do a good job ”
An employment and development official from Minnesota lends support to the general idea that pay and benefits are highly important to most workers
“We know from what employers tell us that the ones having trouble hiring are the ones not paying enough,” says Oriane Casale, assistant director of the Labor Market Information Office in the Minnesota Department of Employment and Economic Development “It’s obvious that wages and benefits are key to putting together a package for new employees, to attract them.”
Increasingly more workers seem to recognize the value of benefits, especially with all the recent political attention that has been focused on health care, she says However, there is a difference in perspective, depending on whether an employer is talking to high school students, college students or incumbent workers
The cur rent generation of college students prepar ing to enter the workforce is different, says Jeff Williamson, provost for Minnesota West Communit y & Technical College in western Minnesota
“They are ver y interested in salar y salar y with flexibilit y and the y want to be engaged w ith each other,” Williamson says Students also want to work in a healthy environment, he says
Minnesota West, which focuses on two-year programs, has campuses in Canby, Granite Falls, Jackson, Pipestone and Wor thington It also has education centers in Marshall, Luverne and Redwood Falls It serves about 2,100 students, mostly on its campuses.
Students are more flexible about where they go to work, in geographic terms, and to get ahead they don’t shy away from moving from company to company, Williamson says. They want credentials that will help them advance their careers.
Mary Medema, director of workforce development for the Sioux Falls, S D , Development Foundation, says a key factor to keep in mind is that a high percentage of people in the Dakotas region are employed and not looking for work.
“I think employers are giving them a lot of what they want,” she says “For a lot of occupations, there’s just not going to be a lot of job-seekers. They’re doing something else. They’re not just watching TV”
To increase the supply of available workers, states such as South Dakota will have to be more welcoming to newcomers, including immigrants, Medema says.
Businesses generally understand that they are going to have to become more involved in training and education prog rams to attract or retain good workers, and that’s good, she says
Employers also have to recognize that many workers want jobs that fit around their personal lives, she says.
“For some, it might just be a paycheck. For others, it’s way more than that They want to feel they have a broader purpose, ” Medema says
A report prepared in 2013 for the national Society for Human Resource Management organization evaluated the importance of employee opinion surveys as a business management tool. The report by David L. Van Rooy of Walmart Stores and Ken Oehler of Aon Hewitt concludes that companies that do not survey their employees are at a competitive disadvantage
But to be effective, companies have to use survey data to make positive changes in the workplace, not just collect information, according to the report
“Since the survey itself is becoming more of a tactical event every year, it is what happens with the data between survey administrations that will differentiate organizations the most,” the study says “Any organization that does not have broadreaching action planning following the survey will quickly lose ground in this area. ”
Laura Millett is the state council director for the South Dakota chapter of the Society for Human Resource Management She also works in human resources as the risk manager for the city of Aberdeen, S.D. Working conditions differ from the floor of a manufacturing plant, for example, to the office of a law firm, she says But workers’ core values might be generally similar
“From my vantage point, they want stability, and then pay and benefits, and to be engaged in their work,” she says “Everyone wants to feel like they’re part of their organization, that they’re valued ” PB
Rob Swenson Contributing writer RobSwensonMediaServices@gmail com
50 Prairie Business Magazine September 2014
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|EMPLOYEE PERSPECTIVE|
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How to succeed at social media
Exper ts offer tips on strategies to stand out from the clutter
BY KRIS BEVILL
Social media has quickly become one of the most important marketing tools available, but it can also be one of the most confusing and misused marketing elements Identifying the types of content you should be using, the frequency of communication with your social followers and which social network platforms you should be using are important first steps to take, according to social media pros With the majority of the world now using social media in some way ever y day, businesses can’t afford not to use social media, but they also shouldn’t expect to gain a social presence with little effort or expertise
Digital marketing expert Jay Baer, founder of consulting and coaching firm Convince & Convert, helps companies understand social media and how to use it their advantage. He says there are three common mistakes businesses make regarding social media strategies The first is under-resourcing the effort “Social media and content marketing are not inexpensive, they’re just different expenses, ” he says. “They’re time intensive and if you can’t put meaningful time against it, you probably shouldn’t start ”
The second social media mistake Baer sees businesses make frequently is rampant self-promotion. “Social media was not intended to be the world’s shortest press release, but that’s how it’s often used and that is a fundamental mistake,” he says
Businesses also sometimes simply miss the point of social media, Baer says. “The goal is not to be good at social media. The goal is to be good at business because of social media,” he says
Baer is a keynote speaker at this month’s FargoConnect, a social media conference hosted by Flint Communications and Summit Software Group on Sept. 3 in Fargo. His main message at the conference will be to explain why
52 Prairie Business Magazine September 2014 |SOCIAL MEDIA|
businesses of all sizes can best connect with their audiences through social media by providing them with information rather than trying to dazzle them Or, as he puts it, “Stop trying to be amazing and start being useful ”
He says that because social media is a unique competition for attention among personal messages from users ’ friends and family as well as other businesses, providing users with helpful information can help a business stand out from the crowd “If you give people information and resources that they truly value, they will pay attention to you, they will remember you, they will buy from you, ” he says
Once businesses have formulated a strategy to share useful information, they must determine which social networks are the right platforms to share it on In order to do that, however, you must first locate your target audience Libby Hall, director of social media at Flint Group, says one way to find your audience is to search social media sites for your company name or an industry keyword to determine which networks they are using and what is being said about your business or industry “Where those conversations are [happening] is going to be a really good indication of where you should start spending your time and entering those conversations,” she says.
Facebook remains the top social network and both Baer and Hall
suggest every business should have a presence there It is estimated that 60 percent of the U.S. population are members of Facebook. “It’s almost like the yellow pages; you almost have to be there just because of the math,” Baer says Other networks, like Pinterest and photo-sharing network Instagram, are growing in popularity, but may not be the right fit for all businesses and should be used only if it fits the strategy Pinterest is more popular with women, but with the right campaign, any business could utilize the site successfully Likewise, if your business caters to women, but you aren’t sure how to utilize Pinterest, the effort might not be worthwhile Hall says one-to-one platforms such as SnapChat are also gaining momentum as marketing tools, but should be used only if it fits the strategy, not just because they’re trending.
Baer agrees and says that the ultimate goal of any social media campaign should be to connect with the customer and alert them to the information you ’ re providing “Don’t go on a social network because you think you have to,” he says. “Go on a social network because you have something to offer ” PB
Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com
53 w w w prairiebizmag com |SOCIAL MEDIA|
How to recruit young professionals back to ND
BY JOANNA SLOMINSKI
Like ever y other business in North Dakota, Mortenson Construction is looking for good talent to move to the state to build “what’s next” for the company. In a time when other states are struggling with unemployment, North Dakota should count itself lucky to have the opposite problem Yet the struggle to fill vacancies can often be frustrating, particularly as the Midwest continues to worr y about “brain drain” the phenomenon of educated youth leaving rural areas for large, urban centers.
Fortunately, Mortenson has found two simple solutions for the “brain drain.” One of our primary targets is young educated professionals who left the Midwest to work elsewhere With ties to the region, many were searching for what they did not know North Dakota offered: small town living with big-city perks
How’d we do it? First, we focused on the hot button for many of today’s 20- and 30-somethings: technology and innovation And, second, we executed an external and internal social media strategy Together those two initiatives produced great results Within a short period of time we were able to successfully recruit more than 15 young professionals to North Dakota to fill vital vacancies (including several internal transfers), and the vast majority of them grew up in nearby rural areas.
At the core of our strategy is the simple acknowledgement that North Dakota is a great place to live Certainly, I do not miss sitting in traffic in the Twin Cities for two hours a day, and neither do our recruits From legendarily good fishing, to hiking the majestic badlands, to the shopping variety in our towns and cities, North Dakota contains the best aspects of small town living with the adventure of truly perfect wilderness At the same time, with the oil boom and sweeping innovation, well-established and pioneering industries are making their homes here, offering employees a chance to significantly further their careers within the state.
At Mortenson we started by telling our technology story. Certainly, North Dakota already has technology greats getting in on the action Technology has a stronghold in the area, including Microsoft and Intelligent InSites While construction is not traditionally known as a high-tech industry, we make a point to show potential recruits that Mortenson is using cutting-edge technology to further revolutionize our field. As an example, we use Occulus Rift, the virtual reality system that is currently making waves in the video game industry, to give our clients a chance to “step into” their new space before it has even been built We share information via iPads, utilize the "cloud" for information storage and use virtual design software. For potential young employees, knowing that their future employer is a technology leader is paramount.
Focusing on your company ’ s innovation will attract new recruits, but where and how do you reach them? For Mortenson, we went where they lived: social media
To reach young professionals Mortenson utilizes a company-wide social media strategy via Facebook, LinkedIn, mortenson com and Twitter Just posting the job opening was not enough we also engaged with those who were interested, and offered updates in real-time And, as our entire company knew about the social media strategy, our current employees were also able to engage their existing social profiles to boost the recruiting process. As always, remember that social media is a two-way conversation, and engaging with your audience is just as important as posting the job
While recruiting continues to be an ongoing challenge to all businesses in North Dakota, we strongly recommend focusing on technology and social media to build a strong and young employee base. The more young employees we bring to North Dakota, the greater foundation we have to build a smart, energized, committed workforce to our great state PB
Joanna Slominski Construction executive Mortenson Construction Joanna.Slominski@Mortenson.com
54 Prairie Business Magazine September 2014 |WORKFORCE|
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Growing with the region
Jamestown plays up its role as a regional hub
BY KRIS BEVILL
Since building the world’s largest buffalo statue in 1959, Jamestown, N D , has been known largely as “The Buffalo City,” but recent activities are setting the course for this central North Dakota community of about 15,000 people to reposition itself as an up-and-coming hub for entertainment, outdoors activities and innovative industrial business
Earlier this year, the Buffalo City Tourism Foundation launched a rebranding campaign aimed at expanding the city’s image to include the plentiful outdoor recreational opportunities surrounding Jamestown as well as its status as a regional hub in addition to its already well-known buffalo-based attractions, including the National Buffalo Museum and resident buffalo herd containing three rare albino buffalos Searle Swedlund, executive director of BCTF, says the “Discover Jamestown” campaign includes three distinct profiles buffalo, the outdoors, and its status as a regional hub and represents the community’s pride in everything it has to offer.
The outdoors aspect of the campaign will emphasize the many camping, hunting, fishing birding and other outdoor activities available in the area immediately surrounding Jamestown, includ-
ing at nearby Jamestown Reservoir and Pipestem Dam and Lake Other unique outdoors activities include an annual weeklong wagon train which offers a glimpse back to pioneer life for participants.
Regional Hub
Jamestown is a regional hub for communities within a 60-mile-radius and Swedlund plans to focus some of the tourism campaign’s efforts on highlighting opportunities for entertainment and leisure, such as the Jamestown Arts Center, that might not yet be as well-known as they should. “The partners in this community are just wonderful,” he says “All of them are small organizations with finite budgets so thinking of ways that we all can partner together and get the message farther out and deeper into the communities in the surrounding area is really our charge for the coming year. ”
The Jamestown Regional Airport is doing its part to boost the city’s role as a regional hub Since regaining commercial jet service in June, the airport has set record enplanement numbers by “playing some aggressive offense,” according to airport manager Matthew Leitner July was the airport’s busiest month since 1978 652 passengers boarded
56 Prairie Business Magazine September 2014 |TALK OF THE TOWN|
The Jamestown Regional Medical Center is prominently located on 53 acres along Interstate 94 and Highway 281 in Jamestown,
N.D.
PHOTO: JAMESTOWN REGIONAL MEDICAL CENTER (continued on page 58)
57 w w w prairiebizmag com DEVELOPMENT JAMESTOWN / STUTSMAN CO. Jamestown/Stutsman Development Corporation (JSDC) is prepared to assist you with any of the following approaches to Economic Development: • Site Selection • Industry & Labor Data • Local, State & Federal Resources • Demographics • Various Incentive packages JSDC has the ability to structure incentive packages providing the best advantage to your business. I-94 BUSINESS PARK Located at junction of I-94 and Highway 281 Water, sewer, street, electric, & telecom available in each lot SPIRITWOOD ENERGY PARK 500 plus acres of prime industrial development land with convenient access to rail and I-94 Services: water, wastewater, heavy power & steam. Connie Ova, CEO connie@growingjamestown.com | 1-866-258-6861 | 701-252-6861 120 2nd St SE Jamestown ND 58401 www.growingjamestown.com Jamestown NORTH DAKOTA 0 0 1 1 2 2 1 9 4 1
(continued from page 56)
SkyWest Airlines’ planes at the airport that month, up 164 percent over July 2013.
Leitner says passengers are arriving from as far away as Aberdeen, S D , 100 miles south of Jamestown, to utilize the airport. He believes the increased interest is due to competitive fares compared to the nearest larger airports in Fargo and Bismarck, N.D., as well as unique perks like free parking and free coffee Round-trip flights are offered to Denver
11 times every week, and the morning and afternoon flight times are convenient for travelers, he says Also, SkyWest operates in partnership with United Airlines, so travelers have access to United’s perks.
Growing Business
Connie Ova, CEO of Jamestown/Stutsman Development Corp , says Jamestown is experiencing a “fast-paced” period of construction as housing, hotels, retail and industrial businesses are being built to accommodate growing demand locally and regionally. Site work has begun on a Menard’s store, which Ova says is expected to open next
July. A large hotel is also in the site work stage and the University of Jamestown has remodeled in anticipation of increased enrollment, she says The JSDC is also finalizing a project which, with help from the Bank of North Dakota, would incentivize the development of new housing units “We’re definitely feeling the growth and glad to have it,” she says.
The city’s current largest employer is UTC Aerospace systems, one of the world’s suppliers of advanced aerospace and defense products. Headquartered in Charlotte, N.C., the company has 150 sites throughout 26 countries The Jamestown facility, in business since 1970, employs 475 people and produces cargo handling systems for wide-body aircraft, including the Boeing 747 Health care is also a major employer in Jamestown. The Jamestown Regional Medical Center currently employs about 350 people The organization completed a major expansion in 2011, relocating the Jamestown Hospital from the city’s downtown to a multitenant hospital/clinic facility located along Interstate 94 and Highway 281 JRMC
remains an independent health care organization though it has partnered with other health care providers to provide its patients with an electronic medical records platform In 2013, Essentia Health opened a clinic on the medical campus K C DeBoer joined JRMC earlier this year as CEO and president and says the new campus will enable the organization to grow and expand its services to meet the community’s needs in the future
The Spiritwood Energy Park, located about 10 miles east of Jamestown near Interstate 94, will soon be home to the Dakota Spirit AgEnergy ethanol plant, a 65 million gallon per year corn ethanol plant. Construction began on the plant last December and is expected to be complete in the second quarter of 2015, according to Jeff Zueger, chief operating officer of Midwest Ag Energy, which owns the facility Zueger says construction is on schedule and currently in full swing on the $155 million project, which is extensive and includes the construction of a roadway, 29,000 feet of rail and water projects in addition to the plant construction When complete, the plant will utilize steam from Great River Energy’s nearby Spiritwood Station as a power source The ethanol plant is expected to employ 38 people.
Zueger says the plant will not be ready to purchase corn from area farmers this harvest, but he is looking forward to working with producers in the area and has received positive feedback from potential suppliers “We’ve had a great welcome out into the area, ” he says
Ova expects the manufacturing and industrial sectors will continue to be leading industries for Jamestown into the future She says the much-anticipated CHS fertilizer plant is still on the table, as is a possible propane transload facility at the Spiritwood Energy Park The JSDC also has space available at the I-94 Business Park, located at the junction of I-94 and Highway 281.
Workers are in high demand in the Jamestown area, as they are throughout the region, but Ova says if employers are competitive, labor is available “If you have good people and you pay them well and treat them well, that’s basically the answer to the employee shortage.” PB
Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com
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Prairie Business Magazine September 2014 58
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When you ’ re a real estate developer considering a potential project, the first factor you consider is location When you ’ re a real estate developer in the Bakken, the second factor you consider is electricity. Demand continues to outpace availability for nearly ever ything in the rapidly growing oil and gas region of North Dakota, including electricity for developments that could otherwise be built outside any number of city limits.
“You can only build if you ’ ve got utilities,” says Robert Gavin, CEO of North Dakota Developments, a subsidiary of UK-based real estate investment firm Property Horizons. He points out that while developers can, and do, build roads and install infrastructure including sewer and water lines, access to power is only possible
60 Prairie Business Magazine September 2014
Bakken real estate market continues to go global BY KRIS
Minneapolis-based Oppidan Investment Co ’s recently completed Pheasant Ridge II apartment building in Watford City, N.D., was purchased by New York-based Trei Pheasant B Holdings LLC for an undisclosed sum PHOTO: OPPIDAN INVESTMENT CO
Going up
BEVILL
through utilities. And while utility companies are doing what they can to power up sites, the backlog of projects sometimes results in delays that ultimately kill the project “We can’t force the power companies to bring us power any faster than what’s in their timeline and if they get delayed there’s nothing we can really do to speed them up, ” he says
Gavin knows the implications of lagging electrical access from experience. Two North Dakota development projects in New Town and Williston were delayed because of it and ultimately relocated to properties that already had access to utilities.
Jay Moore, project developer at Minneapolis-based Oppidan Investment Co , says his company worked with utilities to bring electricity, gas and other essential services to its initial developments in Stanley and Watford City and had a great experience working with the city and power cooperatives, but he agrees that access to utilities is a serious consideration for Bakken developers.
“Everyone is swamped out there,” he says. “One thing we do is work closely with those utility companies and make sure we can get services there, otherwise it is an issue Sometimes you have to walk away because you can’t get what you need ”
But despite lagging infrastructure in rural areas, developers continue to go vertical on projects throughout the region and are finding a growing number of outside investors eager to participate in the local real estate market
North Dakota Developments is currently constructing a 408-suite workforce housing unit in Parshall, N.D. The Transhudson Hotel Parshall is set on 33 acres of prime real estate which will eventually also include an RV park, retail and travel plaza, according to Gavin He estimates the entire project could cost up to $100 million and says it will be funded entirely by international investors, as was the firm’s initial Bakken project an approximately $70 million workforce housing project near Watford City known as the Great American Lodge In early August, he said his company was also nearing closure on a very large residential project in Williston and was continuing to explore additional options in the area
According to Gavin, international investors are becoming more aware of the Bakken play’s longevity and, therefore, interest in investing in those properties has increased noticeably in the last two years In addition to security, the potential
lucrative return on investment is most certainly a draw for investors Property Horizons is assuring its Parshall project investors net yields of 17 5 percent per year Gavin says typical real estate investments outside the U.S. experience 5 to 10 percent net yields Investments in areas outside of the Bakken in the U S typically see net yields up to 14 percent
Oppidan announced recently the sale of the last two properties developed as part of its initial Bakken development plan Construction of the Pheasant Ridge II apartment building in Watford City and the Cash Wise grocery store were completed in May. The 42-unit apartment building was fully occupied upon its sale.
“Oppidan has now successfully sold four apartment buildings and four retail centers throughout the Bakken region, which, I believe, demonstrates the economic stability and financial viability of the region,” Oppidan President Joe Ryan said in a statement “Investors are realizing the potential for growth in the region.”
All eight of Oppidan’s apartment and retail properties were sold to investment firms located in New York, Arizona, Canada and Singapore Moore says the Bakken real estate market continues to attract growing interest from around the world A 77-unit apartment building in New Town being developed by Oppidan isn’t expected to be complete by Jan 1, but the company has already received inquiries from potential buyers and Moore anticipates another quick sale. The company is also in the process of developing a number of other projects, including a 120-acre industrial park in Stanley, industrial facilities for clients including General Electric, retail in Watford City, Tioga and Stanley and residential in Williston
Increased investor interest has brought with it a number of additional developers to the region, but Moore doesn’t see it as a negative. Instead, he insists that the competition will only help promote development in an area of the country that desperately needs it, and Oppidan is determined to continue playing a role.
“Global invest ment in that communit y is only going to help w ith the prog ress of real estate,” he says “We’re not going anyw here.” PB
Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag com
61 w w w prairiebizmag com
|ENERGY|
62 Prairie Business Magazine September 2014 |FEDERAL DRILLING DATA| Monthly additions from one average rig September barrels/day August barrels/day month over month Oil +6 Gas thousand cubic feet/day month over month +8 535 September thousand cubic feet/day August 527 522 516 U. S. Energy Information Administration | Drilling Productivity Report -5 0 5 10 15 20 25 30 35 40 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica September-2013 September-2014 thousand barrels/day Indicated monthly change in oil production (Sep vs. Aug) 0 100 200 300 400 500 600 20072008200920102011201220132014 new-welloil production perrig Bakken Region New-well oil production per rig barrels/day 0 600 1,200 1,800 2,400 3,000 3,600 2 thousand cubic feet/day a U. S. Energy Information Administration | Drilling Productivity Report 0 -500 -400 -300 -200 -100 0 100 200 300 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica September-2013 September-2014 million cubic feet/day Indicated monthly change in gas production (Sep vs. Aug) U. S. Energy Information Administration | Drilling Productivity Report 0 400 800 1,200 1,600 2,000 2,400 2,800 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica September-2013 September-2014 Oil production thousand barrels/day p U. S. Energy Information Administration | Drilling Productivity Report 0 3,000 6,000 9,000 12,000 15,000 18,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica September-2013 September-2014 Natural gas production million cubic feet/day p 2 U. S. Energy Information Administration | Drilling Productivity Report 0 (125) (100) (75) (50) (25) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica September-2013 September-2014 Legacy oil production change thousand barrels/day SOURCE: U S DOE ENERGY INFORMATION ADMINISTRATION
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Gas Captured/Sold
Employment
66 Prairie Business Magazine September 2014
Rates Oil |BY THE NUMBERS| | SPONSORED BY | Jan2000 Jan2002 Jan2005 Jan2007 Jan2010 Jan2012 Jan2015 7 6 5 4 3 2 1 0 P e r c e n t E ective federal funds rate 10-year treasur y constant maturity rate
Interest
M ay ‘14 10,892* M ay ‘13 8,932 Producing Wells +1,960 M ay ‘14 1,039,635* M ay ‘13 811,262 Average Daily Production (barrels) +288,373 M ay ‘14 234 M ay ‘13 211 Total Permits +23 M ay ‘14 189 M ay ‘13 187 Average Rig Count +2 *A ll tim e m on th ly h ig h *A ll tim e m on th ly h ig h A ll tim e m on th ly h ig h : 370, Oct 2012 A ll tim e m on th ly h ig h : 218, M ay 2012 M ay ‘14 $88.31 M ay ‘13 $87.94 Price per barrel +37 A ll tim e m on th ly h ig h : $136 29, Ju ly 2008 M ay ‘14 1,191,628 M ay ‘13 896,359 Gas (MCF/day) +322,269 A ll tim e m on th ly h ig h : 1,133,742, A p ril 14 M ay ‘14 2,138 M ay ‘13 2,260 Coal (Thousand Short Tons) -122 A ll tim e m on th ly h ig h : 2,924, M arch 2004 M ay ‘14 28% M ay ‘13 28% Gas (% Flared) = A ll tim e m on th ly h ig h : 36%, S e p t 2011
Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at david.flynn@business.und.edu.
UNEMPLOYMENT RATE EMPLOYMENT May-14 May-13 May-14 May-13 North Dakota 2.6 3.0 398310 388320 Bismarck MSA 2.2 2.2 62532 62036 Fargo MSA 2 5 2 9 121236 118548 Grand Forks MSA 3 2 3 3 51539 52339 Dickinson MiSA 1 4 1 3 23071 21241 Jamestown MiSA 2.3 2.5 10990 10780 Minot MiSA 2.7 2.6 36036 35451 Wahpeton MiSA 2 9 3 2 11895 11832 Williston MiSA 0 8 0 8 37986 35724 South Dakota 3 8 3 9 436961 431197 Rapid City MSA 3.7 3.8 65932 65890 Sioux Falls MSA 3.3 3.2 132800 131038 Aberdeen MiSA 3 1 3 2 23047 22938 Brookings MiSA 3 5 3 3 18735 18206 Huron MiSA 3 3 3 3 9587 9719 Mitchell MiSA 3.1 3.1 13247 13236 Pierre MiSA 2.8 2.8 12249 12003 Spearfish MiSA 4 4 3 9 12561 12521 Vermillion MiSA 4 6 4 1 6521 6492 Watertown MiSA 3 3 3 3 18723 18507 Yankton MiSA 3.4 3.5 11626 11509 Minnesota 4.6 5.1 2860560 2821026 Duluth MSA 5.6 6.1 136576 137293 Minneapolis-St Paul MSA 4 0 4 6 1805106 1787840 Alexandria MiSA 3 3 3 9 20720 20492 Bemidji MiSA 5 6 6 3 21036 20829 Brainerd MiSA 5.5 6.2 45245 45268 Fairmont MiSA 4.1 4.8 10028 10061 Fergus Falls MiSA 4 1 4 6 30369 29804 Hutchinson MiSA 4 7 5 4 18863 18482 Marshall MiSA 3 3 3 7 14599 14437 Red Wing MiSA 4.1 4.5 24667 24470 Willmar MiSA 3.8 4.0 24047 23992 Winona MiSA 4 0 4 4 28034 27938 Worthington MiSA 3 2 3 6 10998 10996
9% 18% 73% SOURCE: N D PIPELINE AUTHORITY *EIA Original Estimate data (data since 2002) Gas captured and sold Flared due to challenges or constraints on existing gathering systems Flared due to lack of pipeline connection
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