Directions 2015 A Marketing Supplement of Sauk Valley Media
Tuesday, March 24, 2015
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Sauk Valley Media • C1
The 21st Century Sauk Valley COMMERCE: Business after the recession • The Workplace
• Banking/Finance
• The Workforce
• Infrastructure
• Agriculture
• Transportation Cover photography by Alex T. Paschal/apaschal@saukvalley.com
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Tuesday, March 24, 2015
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Sauk Valley Media • C3
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKPLACE
Service jobs should continue growth After recession, manufacturing on comeback trail in the region BY PAM EGGEMEIER peggemeier@saukvalley.com 800-798-4085, ext. 5570 @pam_eggemeier
T
Northwest Illinois unemployment
he composition of the workplace in Northwest Illinois reflects larger trends statewide and throughout the country – continued growth in the service sector and declines in manufacturing. For data purposes, the region includes Lee, Whiteside, Ogle, Carroll, and Stephenson counties. Looking at the region’s three largest industry sectors – services, manufacturing and government – provides insight into how the region’s economic base is evolving. Released in 2013, “Promoting Prosperity in Northwest Illinois” is a compilation of economic data produced by the Northern Illinois University Center for Governmental Studies in collaboration with regional development leaders. The NIU study tracks the three major sectors from 1970 through 2010. During that time, percentage of employment in the region has doubled in the services group. In 1970, it was 16.5 percent of total employment, and those jobs were 32 percent of the jobs base in 2010. Manufacturing has declined from 28.9 percent of the workforce in 1970 to 13.5 percent in 2010. Government jobs, which includes education, have held steady in those 4 decades, dipping from 15.2 to 12.3 percent. While the manufacturing losses have been evident throughout the
The Northwest Illinois region includes Lee, Whiteside, Ogle, Carroll and Stephenson counties. 2000 - 4.7% 2001 - 5.8% 2002 - 6.5% 2003 - 7.0% 2004 - 6.5% 2005 - 5.6% 2006 - 5.2% 2007 - 5.6% 2008 - 7.2% 2009 - 11.1% 2010 - 12.0% 2011 - 10.6% 2012 - 10.2%
Source: Illinois Department of Employment Security
region, Lee and Whiteside counties have held up considerably better than other parts of Northwest Illinois, even during the recession. Manufacturing is now about 20 percent of total employment in those two counties, while other areas are still at the 10 percent to 15 percent level. “We’ve had less impact from the economic downturn than many other areas,” said John Thompson, president and CEO of Lee County Industrial Development Association. “We’ve had more diversity in our business base – all the eggs aren’t in one basket.” The region has fewer manufacturing jobs, but wages have held up well, even during the recession. According to the NIU study, in 2010, manufacturing employees on average were making $54,332. That was 1.5 times the average for all
Alex T. Paschal/apaschal@saukvalley.com
During an open house Sept. 29, 2014, Dixon city Commissioner Jeff Kuhn (left) and BorgWarner plant manager Paddy Lange talk about a product manufactured at the auto parts plant in Dixon.
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The service sector will continue to grow, but surveys demonstrate that this region will still be heavily weighted in manufacturing, especially in metals. John Thompson, president and CEO of Lee County Industrial Development Association
other industries in the five-county region, which was $35,701. Manufacturing earnings went up 16.1 percent between 2000 and 2010, and are projected to rise about that much from 2010 to 2020. Reflecting a global trend, the services sector continues to grow at a rapid pace. The average pay is well below that of manufacturing and government, however, which serves as a reminder that employment numbers
don’t tell the entire story. Many service jobs start at or near minimum wage, and are often part time with no benefits. One part of the service sector, health care, is in a sweet spot for continued growth and good pay. “The service sector will continue to grow,” Thompson said, “but surveys demonstrate that this region will still be heavily weighted in manufacturing, especially in the metals.”
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Services hot, but manufacturing coming back
John Gvozdjak, president and chief operating officer at Frantz Manufacturing in Sterling, said that based on what he’s seeing throughout the region, his sector has bounced back nicely from the recession. “Manufacturing is about 20 percent of GDP in the region, which is surprising to many,” Gvozdjak
said. “It is significantly higher when compared with what’s happening statewide and nationally.” The high concentration of manufacturing in a certain area is no accident, Gvozdjak said. Logistics is critical to business efficiency, and access to suppliers and markets is a plus for operating in the area. “Many supply chain locations are here, and transportation is easily accessible in the region,” Gvozdjak said. “There are a lot of good things here right at our fingertips that help improve business efficiencies.” Another story that isn’t accurately reflected in employment data is a dramatic shift in the nation’s economic base. GROWTH CONTINUED ON C4
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DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKPLACE
Reshoring a trend that could create local jobs GROWTH
CONTINUED FROM C3
The growth of the 1099 economy – consultants and other self-employed workers – can be seen locally. From 2001 to 2012, the number of self-employed jumped from 1.3 million to 10.6 million. During hard times, Americans have learned a job shortage doesn’t mean there isn’t work. Technology has allowed companies to save money on benefits, and made it possible for more Americans to work from home. “I think services will continue to be the fastest grower, but we will also see more 1099 jobs, with people working on contract,” said Betty Steinert, administrator of Whiteside County Economic Development and enterprise zone. Steinert said the 1099 trend is indicative of how the thought processes of young professionals have changed. “Workers used to find a good job after college and stay there for 30 years,” Steinert said. “There is so much more labor force movement now because everyone is always looking for a better opportunity.” In the government sector, where there are many union employees, wage growth averaged 17.6 percent between 2000 and 2010. The opening of the federal prison in Thomson is expected to bring about 1,100 new jobs to the region in this sector.
Technology’s opportunities and challenges Technology will con-
tinue to have a huge impact on the workplace moving forward. While it is increasing productivity and creating hot occupational areas such as technical services, technology has also challenged workers and employers. “Technology is a strange animal,” Thompson said. “It both creates and eliminates jobs, and it demands a rapidly evolving skill set that some employers are having a difficult time finding.” Gvozdjak agrees that technology has given and taken away. Most of the unskilled assembly jobs that have been the first to be outsourced over the years probably aren’t coming back anytime soon. “Those jobs have continued to leave because of technology, and it’s hard to compete globally when companies keep them here,” Gvozdjak said. “The flip side is that automation has made us the most productive nation in the world, and companies continue to invest capital there.” Employers anticipate the worker shortage will soon go beyond the skills gap challenges. “At some point, we’re going to have problems with available labor,” Thompson said. “The baby boomers are retiring, and as we compete for workers, that puts even more emphasis on quality-of-life issues.” Gvozdjak said the average age of his workforce at Frantz is 53, and that many other area businesses are in a similar situation with aging employees. While the anticipated labor shortage is problematic for businesses, it empowers skilled
employees, many who are still struggling to bounce back from concessions made during the recession. “A shortage will be good for worker incomes,” Thompson said. “It could make it even tougher to get workers with higherend skills.”
Bringing work back home Another dynamic, this one global, could enhance job security in the manufacturing sector. Often referred to as reshoring, industrial work is starting to make its way back to America after decades of accelerated outsourcing. Especially in Asia, a growing middle class has demanded higher wages, narrowing the competitive gap with American labor. Companies are making more capital investments at home, and bringing back some of the lost jobs. When the pay difference narrows, the advantages to keeping production at home become more compelling. “We operate in a lean environment – we don’t keep much extra inventory on hand,” Gvozdjak said. “You aren’t taking as many risks with disruptions in production when you locate closer to home.” Thompson said that despite skills gap challenges, area employers convey general satisfaction with the area’s workforce. “We continue to hear that employers are happy with the work ethic in this area’s employee base, especially in manufacturing, where that long tradition counts for a lot,” he said. JOBS CONTINUED ON C5
Philip Marruffo/pmarruffo@saukvalley.com
John Gvozdjak makes his way to the stage to accept the Company of the Year award for Frantz Manufacturing during the United Way of Whiteside County luncheon March 11 at Bethel Reformed Church in Sterling.
WHAT DO WE THINK? What do SVM newsroom members think makes for a good workplace today? Jim Dunn, opinion page editor: A good workplace today embraces change. Respect among employees and supervisors is paramount. It is a safe, collaborative, Jim supportive Dunn environment that encourages creativity amid the necessary structure. Employers offer training, they focus on employees properly doing the various tasks at hand, and they explain why employees do what they do – how their work fits into the larger picture, and why teamwork is so important to accomplish the goals of the organization. The customer must always come first for all employees, with the intention of fostering as many lifelong relationships for the organization as possible. Employees recognize their responsibilities toward two kinds of customers, external and
internal, and work to serve those customers well. Throw into the mix a little good-natured humor and fun, and you’ll have not just a good workplace, but a great one. Christopher Heimerman, night news editor: The best workplaces will be those that refuse to discard the power of human interaction, whether internally or externally. As technology affords us myriad Christopher ways to not Heimerman look someone in the eye while doing business, the organization that prides itself on making personal connection will reap benefits in terms of morale, production and, thus, the bottom line. Yes, technology will help us become more versatile, more efficient. Flat-out more capable. But all is lost without trust, which can only be fully achieved with direct human interaction.
Jermaine Pigee, education and business reporter: Trust is a major factor in a good workplace. Supervisors must be able to trust their workers, and employees must also trust the people they work for. Employees also have Jermaine Pigee to trust the people they work with. Without trust in a workplace, problems start to arise, such as breakdowns in communication and a decrease in productivity. It’s also important that a company is able to embrace diversity. A good company should welcome anyone qualified to do a particular job, no matter their race, creed or sex. Finally, a workplace has to be fun. There is nothing wrong with smiling and giving one another compliments. The more humor that can come out of a stressful situation, the better.
Tuesday, March 24, 2015
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Sauk Valley Media • C5
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKPLACE
Technology, regulations force employers to adapt JOBS
CONTINUED FROM C4
Gvozdjak agrees that the long history of manufacturing success here is impetus for future growth. “This region’s workforce is geared to manufacturing – it’s a heritage that they are very proud of, and it keeps the work ethic at a high level,” Gvozdjak said. “There are also a lot of entrepreneurs here, and I believe industry will continue to grow.” Gvozdjak said the sector must work harder to market itself to ensure that it reaches its potential in the region. Many area businesses participated in National Manufacturing Day events for the first time this year with that goal in mind. Manufacturers want to get the word out that factories continue to get safer, quieter and cleaner. “We want to make manufacturing an attractive career to students,
and give them a reason to return to the area,” Gvozdjak said. “We offer good, high-paying jobs on the management and technical sides of the workforce.”
Development officials look to Springfield for help While the economic base and labor force have changed greatly in the past decade, economic development leaders have been forced to adjust in the way they do their jobs. Steinert said the biggest change she had seen in her development career is in technology. “Computers, especially the Internet, have dramatically broadened the base of people we deal with, and how quickly we can do it,” she said. A constant challenge has been government laws and regulations that can handcuff officials at the local level. ADAPT CONTINUED ON C6
Phillip Marruffo/pmarruffo@saukvalley.com
Workers at Sterling Steel Co. separate the 7/32nd rods at the 12-inch rod mill in this 2011 file photo. While manufacturing has declined from 28.9 percent of the workforce in the region in 1970 to 13.5 percent in 2010, the sector has held up considerably better here than in other parts of Northwest Illinois, even during the recession.
Forward Thinking:
Kids get a look at today’s manufacturing STERLING – Make it Here! was the theme of the first observance of Manufacturing Day in the Sauk Valley on Oct. 24. About 500 freshmen from 17 area high schools took part in the event. The focus for the students, educators, and manufacturing representatives was on one word – skills. “Manufacturing today is hightech, clean, and exciting, but you have to have a skill,” Kim Purvis, Whiteside Area Career Center director, told the students. Jim Prombo, career placement coordinator at Morrison Institute of Technology, stressed the importance of students taking an active role in
planning their futures. “You need to think about what you want to do now – time flies by. Not to decide is to decide. If you don’t take an active part, someone else will decide for you. It has to be your choice, not someone else’s,” Prombo said. The students gathered at Sterling High School’s Centennial Auditorium for a multimedia presentation about careers in manufacturing. They then boarded buses, and each group toured a different local manufacturing site. The students finished the day at Sauk Valley Community College, where they had lunch, visited with company representatives,
and toured the college’s technology area. For some of the students, the Manufacturing Day tour was the first time they had been in a production plant. Not the case, however, for Brad McClendon of Sterling High. His father is a longtime employee of Deere & Co. in the Quad Cities, and tours of that plant have Brad pointed in the direction of manufacturing. “I think I’m going to Sauk for welding, and do the welding program at Whiteside Area Career Center,” Brad said. “It’s a high-paying job, but I think I’m going to get a manufacturing job here before I go to school, just to make sure I like it.”
Alex T. Paschal/apaschal@saukvalley.com
Morrison Institute of Technology placement coordinator Jim Prombo talks to a group of students about some of the technical design items on display at the booth Oct. 24 at Sauk Valley Community College.
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C6 • Sauk Valley Media
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Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKPLACE
Rauner: Making Illinois more competitive a priority ADAPT
CONTINUED FROM C5
“The state and federal government must make it easier for companies to do business at home,” Steinert said. “We are often at their mercy with how much support we can give them.” The new administration in Springfield has promised to make Illinois more business friendly, but for now, local officials are working to solidify working relationships and keep open the lines of communication with the threat of significant budget cuts looming. Steinert, who is a board member and secretary/ treasurer of the Illinois Economic Development Association, was one of 40 officials statewide who participated in a meeting with Gov. Bruce Rauner on Feb. 27 at the Union League Club in Chicago. At the meeting, Rauner said his top priority was the economy and making Illinois a more competitive and compassionate state. “That effort must be closely coordinated with the work taking place in local economic development offices,” Rauner said. “It’s easier to address the challenges facing Illinois when leaders at all levels are working toward the same goals.” IEDA Board Chairman Terry Denison said there are valid reasons that Illinois businesses are exploring options elsewhere. He said the state is faced with the difficult task of balancing the need for short-term fiscal responsibility with providing tools for retention and expansion of its economic base. “The corporate tax burden is among the highest in the nations, workers’
compensation needs reform, schools have not been adequately funded, workforce training programs are under attack, and revenues are shrinking,” Denison said. Steinert believes the recession would have been the ideal time to beef up funding for workforce training programs. “I think government missed an opportunity to create a positive from the economic downturn,” Steinert said. “When so many people were out of work, they should have stepped up efforts to address the skills gap by increasing funding for high-tech manufacturing training.” Steinert believes more focus must be shifted to the trades. “Not everyone is supposed to go to college for 4 years,” she said. “Technical training in the trades is critical if we are to address the skills gap and future labor shortages.” After the stinging impact from the loss of large manufacturers, development officials have a new appreciation of smaller businesses. “Don’t get me wrong; I love large manufacturers,” Steinert said, “but when GE closed in Morrison, and the mill in Sterling, that kind of hit to the workforce and the taxing bodies is very difficult to recover from.” Sterling’s Wahl Clipper has become an example of what is good about smaller companies, Steinert said. “Wahl Clipper has grown to about 900 employees, it has local ties, and is very invested in the community,” Steinert said. “Smaller isn’t always bad – you don’t end up with 3,000 people out of a job at once.”
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S
Building For The Future:
New headquarters facility for Wahl Clipper STERLING – Wahl Clipper Corp. reinvested in Sterling in 2014, with the help of a state economic development incentive program targeting businesses that are considering projects in another state. Wahl announced that it would build an $8.5 million corporate headquarters building on its Sterling campus. The maker of personal care devices started construction on the 40,000-square-foot building in the spring and wrapped up the project before year’s end. Wahl promised the state Depart-
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ment of Commerce and Economic Opportunity that the expansion will create at least five jobs and allow it to retain the 114 workers at corporate headquarters. The company employs nearly 900 in Sterling, and about 2,000 worldwide. In return for its job creation promise, Wahl qualified for a tax credit through the state’s Economic Development for a Growing Economy program. While the incentives played a big role in Wahl’s decison to build the headquarters here, there were other
factors at play, the company said. “It also underscores our belief in the region as a good place to live and do business,” Wahl CEO Greg Wahl said. The expansion serves two main purposes – to accommodate future growth, and to better showcase a company with a growing global footprint. “The new facility frees up a great deal of space in our current facilities to allow us to continue to grow and prosper,” Wahl said. “It will also provide a state-of-the-art corporate facility as a showplace to our worldwide customer base.”
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Not everyone is supposed to go to college for 4 years. Technical training in the trades is critical if we are to address the skills gap and future labor shortage. Betty Steinert, administrator of Whiteside County Economic Development and enterprise zone
WHAT DO WE THINK?
What do SVM newsroom members think makes for a good workplace today?
Angel Sierra, online editor: Businesses are in the business of making money. It’s what drives the economy, fuels space rockets, and for many Americans, it’s the extra motivation they need to get up in the morning. But it shouldn’t be the only reason. Angel As companies keep Sierra an eye on the bottom line, doing more with less comes to the front of the conversation, and often overshadows many of the benefits that good, honest work provides, such as camaraderie, workplace culture, teamwork opportunities, and a center for personal growth. Perks and a retirement contribution are good, but the focal points get lost when enterprises don’t make an effort to maintain and improve morale. After all, people make or break a business – both customers and employees.
Christi Warren, reporter: The best workplaces are ones that are open, friendly, and encourage a creative environment – whether that creativity is applied to writing a news story, new ways to market to clients, or ways to get kids interested in joining a sports team. Mobility is also imporChristi tant. More and more Warren frequently, I read or hear about businesses that forgo the traditional brick-and-mortar storefront, because, quite frankly, with the Internet and the constant connectivity we have now, companies don’t need them. I operate largely from my cell phone and use a laptop, which makes me capable of producing stories from anywhere. If I’m sick, I can work from home. When I was covering a trial in Rock Island, by the time court was over, I was already mostly done with my story, and could quickly file from the coffee shop down the street. Mobility and
connectivity are key to creating a productive workplace, and will continue to be more important. Matt Mencarini, reporter: The biggest factor contributing to a good workplace is the people. Workplaces can get stressful and we all spend a significant amount of our time at work. For me, the difference between a good workMatt place and a bad one Mencarini is the people around you. The people can make the hard times better and the good times great. And when you like working with the people around you, you can add 5 days to Larry your week. Lough Larry Lough, executive editor: 1) Fun. Every job has some drudgery, so find humor when you can, and laugh when appropriate. 2) Cookies.
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Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKFORCE
Manufacturing jobs available for the qualified Lack of trained applicants leaves many positions open BY JERMAINE PIGEE jpigee@saukvalley.com 800-798-4085, ext. 5525 @JPigee84
W
hen students are asked what they want to be when they grow up, often they may say things like lawyer, doctor or professional athlete. Very few, if any, mention advanced manufacturing. However, plenty of jobs in advanced manufacturing go unfilled because applicants lack the qualifications needed. “There is a huge shortage of qualified manufacturing skilled labor workers,” said Kim Purvis, director of the Whiteside Area Career Center. “In the Sauk Valley region, we have a lot
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Sometimes, we tend to pigeonhole students. If you are a student that is good in biology, we tell them to go into medicine. We overlook a lot of careers that are available for good pay. Kim Purvis, director of Whiteside Area Career Center
of open engineering jobs and engineering tech jobs.” Those are not the only manufacturing jobs available. According to the National Association of Manufacturers, 82 percent of manufacturers have a moderate or serious shortage of skilled production workers, and 5 percent of all manufacturing jobs – about 600,000 – are open because there is no qualified talent.
In addition, 2.7 million manufacturing employees are 55 years old or older and likely to leave the labor force within the next 10 years. John Gvozdjak, president and chief operating officer of Frantz Manufacturing, said the more students who become qualified for manufacturing positions, the better. “Parents think there are no jobs in manufacturing, and there is such
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a push to send kids to college,” Gvozdjak said. “Not every student needs a 4-year degree to get a good job.” Area manufacturing companies need and want to attract more students to advanced manufacturing fields. Officials at Sauk Valley Community College and the WACC have been doing what they can to prepare students for the workforce. QUALIFIED CONTINUED ON C9
Michael Krabbenhoeft/mkrabbenhoeft@saukvalley.com
Sterling High School student Austen Sage, then 17, removes the memory card from a computer during a class at the Whiteside Area Career Center in March 2014.
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Sauk Valley Media • C9
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKFORCE
Skills gap more pronounced with higher-paying jobs QUALIFIED
CONTINUED FROM C8
“There are a lot of openings right now for engineers, and there is a lot of openings in technology,” Purvis said. “Things that an engineer does in many ways starts on the computer when they are designing and drafting.” Purvis also said manufacturing is not what it used to be. Today, manufacturing companies are not only innovative, they work in teams and use technology. Because of that, Purvis said, the more students can learn while they are in school, the better. “Sometimes, we tend to pigeonhole students,” Purvis said. “If you are a student that is good in biology, we tell them to go into medicine. We overlook a lot of careers that are available for good pay.” Frantz Manufacturing has also worked closely
with WACC, helping the center revamp its welding program. “We can bring their interns into our program,” said Robert Urbanski, director of human resources for Frantz. “We have brought their interns in to work with us so they can get real-world experience.” The skills gap comes into play with higherpaying jobs that generally require more than a high school diploma. Today’s high-tech machinery depends on community colleges and technical schools to equip workers with necessary skills. Anita Carney, business services coordinator at Sauk Valley Community College, said employers are looking for a more skilled workforce. “That is going to require most individuals to come in with skills that are going to be obtained after a high school diploma,” Carney said. SKILLS CONTINUED ON C10
WHAT DO WE THINK? Angel Sierra, online editor: The future realm of “Star Trek” tells us that money will no longer motivate our species, which will fill its time with personal enrichment, research and space exploration. In the very distant future, you won’t have to worry about finding a job because you can study whatever you please. Unfortunately, trekkie canon is filled with pages of fiction, and in the real world, if you don’t work, you don’t eat. Some of my colleagues might argue that one should study whatever sparks an interest, but we can use data from government surveys and charts as indicators to forecast the most in-demand employment. The goal, however, is to arm yourself with a skill set that
Alex T. Paschal/apaschal@saukvalley.com
Christian Meggers of Fulton works on a welding project at Whiteside Area Career Center in 2012. In addition to WACC, Sauk Valley Community College has a welding program designed to meet the needs of local employers, specifically the manufacturers that make up 30 percent of employment in the SVCC district.
What would you encourage kids to study these days to prepare themselves for the future marketplace?
you can then adapt and mold. Today, there are jobs that didn’t exist 30 years ago, and 30 years from now there will be jobs that don’t exist today. Genetic counselors, Web developers, and wind turbine technicians, all are new introductions to the outlook handbook produced by the Bureau of Labor Statistics. A well-rounded education is a must, but more important is your ability to keep an open mind and learn new things. Christi Warren, cops & courts reporter: The best majors going forward are the ones that promote a creative and connected mindset. By that I mean: Anything that teaches someone how to take a clas-
sic discipline and implement it on the Internet is good. On and off for the past year I’ve been teaching myself how to code. Right now I feel very comfortable with the two most basic coding languages: HTML and CSS, and hope to bridge to more complicated coding languages this summer. In journalism school, there were five main majors you could choose from: Magazine (what I picked), print, broadcast, strategic communication, and convergence. Hardly anyone chose convergence, because it didn’t really seem to have a solid focus — it’s a muddling of all of the other majors, but with a focus on the digital component of each. Well, today, I’m one of the only maga-
zine or print majors I know with a job in actual, daily journalism. The convergence majors? All hired. Jermaine Pigee, education and business reporter: These days, companies are asking their employees to do more with less, so the more skills a student has, the better. I would encourage students to take classes in marketing and communication. In pretty much any profession, students are going to be asked to have good oral and written communication skills. There are so many new and different ways to communicate, so students have to be able to adapt. Just because student scan send a text message or a tweet, does not mean they know how to do it professionally.
Students may also want to look into the manufacturing field. There are plenty of manufacturing and engineering jobs available. And they pay well. Most of those jobs can be filled with just a 2-year degree. Some kids may steer clear of a manufacturing job because it’s not glamorous like a doctor or lawyer. But, the manufacturing field needs qualified workers. Larry Lough, executive editor: Study what interests you. That will ensure a focus on the subject. But whatever you study, learn how to learn. That leads to discovery, to interests you didn’t know you had, and helps you to challenge conventional wisdom. It’s a discipline that will help you throughout life.
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C10 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKFORCE
Workforce readiness coalition pairs educators, employers SKILLS
CONTINUED FROM C9
“It’s not so much on-the-job training anymore. Employees are expecting workers to come in with a certain set of skills and knowledge for many occupations today.” According to school officials, the SVCC welding program has been designed to meet the needs of the local employers, specifically the manufacturers that make up 30 percent of employment in the SVCC district. “That type of degree will offer you the technical training, math skills training, and some of the required skills that will be necessary in order to obtain those maintenance mechanic positions or advanced manufacturing positions that are in definite need in the area,” Carney said. As a way to help students find work in manufacturing, Sauk has created a workforce readiness coalition made up of a group of manufacturing companies that
work with college officials. “They communicate back and forth about skills that are needed,” Carney said. “The companies get together with individuals at Sauk, and they communicate about what skills are needed in the classroom that will translate into skills needed in the skilled labor workforce.” Urbanski said Frantz struggles to fill its skilled trades positions. “Maintenance positions are hard to fill, and finding the right person is hard,” Urbanski said. “Tool and die makers are often tough to find.” Until Frantz is able to find a qualified applicant, a job will go unfilled. “Occasionally, we get lucky and we get the position filled,” Urbanski said. “However, it’s not unusual for those positions to remain open for some time.” Gvozdjak said as a manufacturing company, Frantz is very interested in qualified students, especially locals. READINESS CONTINUED ON C11
Philip Marruffo/pmarruffo@saukvalley.com
John Geherke shows students from Montmorency School a gas leak in his building trades program April 30, 2014, at Whiteside Area Career Center in Sterling. More than 1,100 eighth-grade students from 14 area schools were given a first-hand look at the programs by the current students and instructors during WACC’s annual Career Quest.
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Sauk Valley Media • C11
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | THE WORKFORCE
Forward Thinking:
Policing the Internet for a career DIXON – Jacob Lemmert needed less than 2 minutes to find email log-in and password information for the president, vice president and other officials at a university in India. All it took was a Google search and three clicks for Hannah Borgman to find her way to the private studio webcam for a Georgia radio station. It wouldn’t take much more for Lemmert or Borgman to take the information or access they now had and do something malicious. But they didn’t. That wasn’t their intention. They were sitting in the back of a classroom in March 2014 at the Whiteside Area Career Center in Sterling. They, along with about a dozen other students in Dana Fellows’ Computer Technology I and II classes, sat in front of dual monitors and showed how easy it was to find unsecured networks and information.
READINESS
CONTINUED FROM C10
Alex T. Paschal/apaschal@saukvalley.com
By just a few simple searches, Fulton High School senior Hannah Borgman discovered an unprotected web cam during a class last March at Whiteside Area Career Center. Lemmert is a senior at Dixon High School, and Borgman is a senior at Fulton High School. Fellows teaches his students the same skills they would need to hack into a website or server, he said, because then they will be equipped with the skills they
need to prevent a hack. “If I try to block everything and keep these guys from doing stuff, they’re going to find a way to do it anyhow,” Fellows said. “So the best thing to do is to try to teach them to have high moral values and ethics.”
WHAT DO WE THINK?
Christopher Heimerman, night news editor: Don’t study only that which you think you’ll have to study. Dale Heuck can attest to that. He taught hundreds of students chemistry at Sauk Valley Community College, and there was no greater reward for his effort than watching the light bulb go on for students who didn’t know what they wanted to major in. He’s seen students utterly uninterested in science go on to be doctors. You know what? It’s not necessarily a lack of interest. Maybe it’s just lack of exposure. I was going to be a music teacher. Then I was going to be a sports writer. Then
a hockey broadcaster. Then a sports writer. It’s easy to develop tunnel vision when you think you know what you want to do. Because, of course, you want to be the very best version of that person that you can be. But what happens when you change your mind? Or when life forces you to take a detour, or a different direction altogether, not to return to any of your previous plans? So the best advice I can give is to be well-versed in anything you can get your hands on. Internships are an exceptional way to do this, allowing you to get your hands on as much hardware and software as you can. But even in dayto-day life, if there’s something that even tangentially interests you, look into it. If there’s a pricey app or program you find interesting, find a way to try it out for free, rather than dismissing it as too expensive of an avenue to explore. And don’t think you know what you don’t like. I never saw myself designing pages or copy editing, at least not primarily. I was a writer, man. Now my knack for pagination is one of my strongest skills. And I get strangely giddy when something comes across my desk that needs a copy-editing facelift. In short, allow for the possibility that you don’t know exactly what you want. Never turn down a free lesson, or the ability to learn from those you admire. Try everything you can.
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“Together with other manufacturers in the region, SVCC, and WACC, we have done a lot to promote manufacturing as a career beginning with our first annual Manufacturing Day event held in October of last year,” Gvozdjak said. Nearly 500 freshmen from area high schools gathered at Centennial Auditorium in Sterling to learn about career opportunities in manufacturing. Ten companies gave tours to show how raw materials eventually become an array of products shipped throughout the world. Students then went to the college to meet manufacturing leaders about career opportunities. Gvozdjak also said he would like students who left the area
to return to work in the Sauk Valley. “We need college graduates to come back to our area for management and engineering type positions,” he said. “We need students who are good technically and with STEM who work toward certification after high school for the technical job skills necessary in today’s manufacturing environment.” Urbanski also took an intern from WACC to teach him the ropes. “We are helping him learn the position,” Urbanski said. Although each position is different, Urbanski said, he is looking for people who understand the different aspects of manufacturing. “Not many programs teach that,” Urbanski said. “We have to pick up the burden sometimes because students don’t have the training to address these things.”
FROM
What would you encourage kids to study these days to prepare themselves for the future marketplace? Matt Mencarini, reporter: Computer programming will undoubtedly play a major role in all aspects of life, whether its obvious or behind the scenes making our new technology work faster and more efficiently. If high school or grade school students aren’t already learning the basics of coding, I think they should start. It’s something I’ve spent a little bit of time learning myself. It’s hard to say for certain what industries will have high paying jobs in 10 or 20 years and where the growth will be. But I think it’s safe to say that having computer programming skills, in addition to strong reading, writing, math and science skills, can only make students more prepared for whatever the working world looks like then.
‘We need college graduates to come back to our area’
THE BOILER ROOM
By Andy Edmondson As we continue to move forward with our effort to replace the boiler I want to let our stakeholders know that we are in the middle of an energy audit to help determine the best steps to take in upgrading the boiler. As we complete the audit we will keep you informed of the results. In the last four months we have raised close to $25,000 which is 10% of our goal. We are off to a great start! We need your support in keeping our efforts moving forward. Every gift really does matter. A little goes a long way at Newman. When you make a donation you are joining hundreds of alumni, parents, friends, students, faculty, and staff who support Newman. All of the donations, most under $50, add up in a big way. Please send your donations to: Andy Edmondson, Principal, Newman Central Catholic High School, 1101 West 23rd St., Sterling, Il. 61081. Members of our committee include Andy Edmondson, Sterling; Sam Meier, Rock Falls; Doug Fitzgerald, Sterling; Don Burton, Sterling; Matthew Scroggins, Sterling; Doug Lee, Dixon; and Rick Curia, Dixon.
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C12 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | AGRICULTURE
Recession’s impact not felt on farm employment Now Offering Of ering Collision Coll sion Repair R pair On All A l New N w Models! Rock Katschnig grows corn near Hoopole in Henry County, just south of the border with Whiteside County. (SVM photo by Alex T. Paschal/apaschal@saukvalley.com)
FREE R ESTIMATES! S S
Technology making farm consolidation easier BY MATT MENCARINI mmencarini@saukvalley.com 800-798-4085, ext. 5529 @MattMencarini
W
hen the recession hit, families across the country, Illinois and the Sauk Valley started to cut back on expenses, which hurt some service industries and retail sales. But something families did not cut back on, at least in a significant way, was food. That, along with strong international demand for American farm products, said Mike Doherty, senior economist and policy analyst at the Illinois Farm Bureau, allowed farm employment to stay constant during the recession. “Farming is a little counter cyclical to the
economy,” he said, “or independent from the rest of the economy.” People will eat regardless of whether they have a job or not, he said. Food intake doesn’t fluctuate much with the economy, he added, although dairy might take a hit and some beef consumption might be replaced with chicken, a cheaper alternative. Norman Walzer, a senior research scholar at the Northern Illinois University Center for Governmental Studies, said the county’s strong safety net helped, as families on welfare bought food first. Interest rates for farmers were low, he said, and even with a little more competition from counties like Brazil, farm employ-
ment and food consumption in the U.S. didn’t drop off much during the recession. Between 2006 and 2013, the industry saw a drop from 450,040 farm workers to 435,250, excluding self-employed farmers, according to the Bureau of Labor Statistics in the U.S. Department of Labor. A contributing factor to the reduced employment, Walzer said, could be the impact technology has had on farms. Technological advances in tractors – GPS steering, yield monitors, and improved sensors – are part of the improvements that have made it easier for fewer farmers to work more acres.
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Sauk Valley Media • C13
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | AGRICULTURE
A NEW KIND OF STEER ON THE FARM
David Book turns on his GPS unit inside the Challanger tractor on the Book family farm just southeast of Dixon. The Book family has farmed for three generations. Book’s son, Aaron, said technology allows the family “to produce as much as you can at a lesser cost.” (Philip Marruffo/pmarruffo@saukvalley.com
F
BY MATT MENCARINI mmencarini@saukvalley.com 800-798-4085, ext. 5529 @MattMencarini
ive years ago, technology for auto-steer tractors was available, but had yet to make it to the market and into the fields of the Sauk Valley. Now, some farmers, like Adam Henkel of Sublette, won’t even consider buying a tractor without the GPS technology that allows precision planting. Technology in the farming industry has grown as rapidly as it has in other industries and other aspects of life.
Many say that Big Data – a term used to describe the massive amounts of data that can be harvested for information – will lead the next big technological developments for farms. Data points will be collected from soil, weather, plants, seeds, fertilizer, weeds, insects and more, and be available at tech-savvy farmers’ fingertips. But experts say the data will be valuable to farmers only if it can be utilized and isn’t overwhelming. That’s why
advancements in software and hardware are likely in the future. Rus Higgins is a University of Illinois Extension educator focusing on commercial agriculture at the Northern Illinois Agronomy Research Center in Shabbona. He’s not surprised by the way technology in the industry has taken off. “I think farmers tend to be pretty rapid adopters of technology,” he said. “As matter of fact, I would dare to say there are a number of farmers that are in front of where we are at the research farm.” Henkel’s operation at Sublette doesn’t use technology just for the sake of using it, but rather to make sure the resources – such as seed and fertilizer – are used as efficiently as possible. “Anything that we use now, we’re basically putting what we need where we need it,” he said. Some farmers, Henkel said, don’t think they need the auto street technology. But for him, the fact that it keeps the tractor on the perfect path, minimizing the number of trips through the field and taking stress off the driver during the long hours of planting and harvesting, makes it a necessity. In 1990, Henkel and his family farm took a step into the technological side of farming when he got a bushel counter, which, he said, was the precursor to modern yield monitors. TECHNOLOGY CONTINUED ON C17
FARMERS REAP THE BENEFITS OF WHAT TECHNOLOGY HAS SOWN
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C14 • Sauk Valley Media
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Tuesday, March 24, 2015
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Sauk Valley Media • C15
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C16 • Sauk Valley Media
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Tuesday, March 24, 2015
Dixon…A City on the Move!
Continue the Progress!
51 Quality Characteristics about Dixon, IL Est.1832 *A beautiful Community known as the Jewel of the Sauk Valley. *Heritage Crossing Downtown Riverfront Plaza anchored by Ronald Reagan statue. *Petunia Capital of Illinois. 200 volunteers plant 30,000 petunias along mainstreets. *Ronald Reagan Boyhood Home and Visitors Center with a gift shop. *Central Business District declared a National Historic Site by the U.S. Park Service. *85% occupancy in Central Business District including several upscale restaurants. *A designated Tree City, USA Community with a City appointed Tree Board. *A master planned 1-88 Interchange Business District anchored by a SuperWalMart. *One of the best-organized, effective Main Street Organizations in Illinois. *More parks per capita than any other Midwest City including the picturesque and charming 200-acre Lowell Park along the Rock River, which is listed on the National Register of Historic places. *The Dixon Historic Center, an architectural jewel, preserving local history (formerly grade school attended by Reagan) *Historic Lincoln Highway and Reagan Trail running north south through City. *Quality affordable housing from grand Victorians to modern mansions. *Dixon Victory Arch over Downtown Street. First one erected in 1919 after WWI *The beautiful Rock River, which early settlers called the Hudson of the West, flowing through the middle of the City. *The state designated Catfish Capital of Illinois. *A Downtown Welcome Center providing information on historic sites and attractions to visitors. *A growing tourism industry spearheaded by the City appointed Dixon Tourism board. *A large growing art community anchored by the Next Picture Show Fine Arts Center, the Crystal Cork, Second Saturdays Art Happenings and Gardenstock. *A comprehensive health care system with two multi specialist clinics and 100 bed KSB Hospital. *6 public golf courses in Dixon and surrounding area. *An $18 million dollar state of the art waste water treatment plant designed to expand and process double the current population. *At a cost of $14 million, deep-water well systems are providing safe, highest quality potable water to citizens and food manufacturing companies. *Environmental accomplishments by City published and distributed world wide in Global Mayors Forum Magazine. *One of the best-maintained modern small airports in the state (3800’runways with plans to extend to 5000’) *A solid public and parochial school system anchored with a community college. *A broad based diversified industrial community and 3 business parks with the infrastructure in place to develop an additional 1000 acres. *The community is served by a daily newspaper and 5 am-fm radio stations. *The City is the location of the Illinois Department of Transportation District Office, an Illinois Correctional Institution and the Mabley Developmental Center collectively employing close to 1,000. *A strong core of business and civic leadership supported by 175-citizen volunteers serving on 23 City appointed boards and commissions. *The Loveland Community Building and Museum. *A successful City partnership with Lee County Industrial Development Corp. recruiting new industries. *A $7 million high tech public safety building housing the Dixon Police and Fire departments. *Two modern bridges with wide walking/biking pathways connecting Heritage Crossing to the Park District trail system. *Residents that are proud of their City and confident about its future. *A City appointed Historic Preservation Commission committed to preserving and restoring historic downtown buildings. *Religious diversity with 30 houses of worship including a Mosque, 2 Catholic and 27 Protestant Churches. *John Deere Home and Historic Site (Grand Detour) *A 75-member municipal band since 1920 that developed nationally known musicians. *Abe Lincoln statue at site of Fort Dixon where Lincoln served as a Captain in U.S.Army during the Blackhawk Indian War. *Lincoln marker and bronze narrative plaque on Old Courthouse lawn where Lincoln spoke to thousands of Dixon and Lee County residents on behalf of 1856 Presidential Candidate John Fremont. *60-acre Plum Creek Arboretum and Botanical Center. *Veterans Memorial Park with many exhibits and military displays. *Reagan Peace Park with Wings of Peace sculpture, murals and full size replica of Berlin Wall, which Reagan was instrumental in having torn down. *Nachusa apartments, formerly Nachusa Hotel opened in 1853. Guests included Abraham Lincoln, Ulysses S. Grant, Theodore Roosevelt, William Howard Taft, Jefferson Davis, Stephen Douglas and Ronald Reagan. *Home to the Lee County Genealogical Society and Lee County Historical Society research centers providing family heritage and historic information. *Historic Dixon Theatre Center for the performing arts opened in 1922. *Numerous annual festivals and events including the week long Petunia Festival over July 4th one of the state’s largest, IrishFest, Cabela King Kat Catfish tournament, Reagan Trail Days, Carp Fishing Tournament, Oktoberfest, Reagan 5K Run and ChristmasWalk. *Reagan Way - a 9 block historic street featuring the 4 institutions that developed and shaped Reagan’s character including the boyhood home, grade school, public library and First Christian Church. *Dixon Telegraph Museum features the newspaper and its role in the history of Dixon with many photographs. *Dixon Sister Cities Association coordinating activities and visits with 4 chartered sister cities in Herzberg, Germany; Dickson, Russia; Castlebar County Mayo, Ireland and Thika, Kenya.
Tuesday, March 24, 2015
www.saukvalley.com
Sauk Valley Media • C17
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | AGRICULTURE
Challenge: How to make use of data being collected TECHNOLOGY
sions in an effort to find the most efficient use of resources.
CONTINUED FROM C13
“We had an in-field, instant kind of readout. ... Without anyone else,” he said. “We could do it on the fly by ourselves.”
Eyes in the sky
Unmanned aerial vehicles – also known as UAVs, drones or quadcopters – are likely to be the most visible new technology farmers look to integrate into their operations in the next few years. “There’s a lot of pentup demand and interest in this technology,” said John Hawkins, information services director at the Illinois Farm Bureau. Henkel said he already has plans to buy a UAV for his operation. He wants it to monitor fields without his having to go out himself or send someone out. For example, if a big storm makes its way through the area, he’ll be able to quickly send up a UAV and get a look at his land, facilities and crops to check for damage. “I see it becoming a very valuable tool in the farm operation,” he said. “... This is going to give me the 200-feet view of my farm.” Photos or video from the UAV can be sent off to experts for analysis, giving the farmer yet another tool and another data point to make deci-
Technological Advances:
Mobile, tablet ag apps a ‘game-changer’
‘Big Data’
Higgins, at the U of I Extension, said farms now have the opportunity to provide thousands of data points that can be evaluated and analyzed, from the weather above to the soil below. “[Technology is] just on the verge of collecting all this data,” he said. “The big challenge in the upcoming years is how to make use of it.” In theory, Higgins said, if all the information can be related to specific crops and how they respond to different levels of fertilizer, soil conditions or the weather, the result will give “great predictive values.” Those values will be realized if the technology can sort through all the data and find what’s useful for farmers. Thousands of data points might be collected, Higgins said, but only a dozen or so might apply to the crops on a specific field during a specific year. Getting to the point where all the data can be useful could be a struggle, he said. But there’s optimism because the major seed companies are devoting resources to refining the technology to get it into the marketplace. Higgins said a “wild guess” is that farmers
BY ANGEL SIERRA asierra@saukvalley.com 800-798-4085, ext. 5695 @_angelsierra
Emerging applications for smartphones and tablets don’t just make a farmer’s field work a little easier. They also enhance the producer’s ability to track and adjust to problems, and make sense of critical farm data on-the-fly, area experts say. Adam Henkle, 35, is a seventhgeneration Lee County farmer who helps on 1,600 acres of a homestead near Sublette that dates back to 1843. And as an independent contractor for DuPont Pioneer, Henkle specializes in transitioning farmers to equipment and software that can seamlessly integrate and they measure, monitor, and extract vital information. The technology is a welcome, helping hand, Henkle said, because a lot of the work that once required manual adjustments, such as variable-rate changes on the field, have become automated, and guidance systems and monitors, which previously were only available on combines, now are connected to almost every machine.
could see that technology in 5 years. Ideally, farmers will be able to use the information to increase efficiency and cut down on risk, and go beyond, for example, just an alert that a 80-acre section of land has a fertility problem, said the Farm Bureau’s Hawkins.
In this screen shot from a promotional video online, a farming app is displayed that shows a few of the options available to farmers and service providers. Today’s farmers are highly educated and apt to using the technology on the market, said Danelle Burrs, 29, manager of the Lee County Farm Bureau. Tablets such as iPads have made their way into the cabs of tractors working rows on the ground. A Sauk Valley Media online search for farming apps listed several top-tier agriculture companies that produce companion programs for mobile and tablet use. While most of those share similarities in function and goal, the wide spectrum available spans simple calculators to
Soon, the alerts might take into account the weather and precipitation from the past days or weeks, paired with historical data, to let a farmer know where he should devote resources in days or even weeks ahead. The information might even alert farmers to
feature-rich suites. Encirca, a division of DuPont Pioneer, pushed last year to bring field and crop scouting information to the hands of farmers and service providers, an indicator by the Des Moines, Iowa-based leader that shows realtime management of field data is a positive trend. Under the Encirca umbrella are two powerful apps: Encirca View, which provides market data, crop conditions and weather forecasts, and Encirca Yield, which analyses seed irrigation and Nitrogen levels, according to its website. “It’s an amazing tool, [and] I’ve had a very positive reception,” Henkle said, adding that mobile apps like Encirca have become the go-to for farm management, increasing efficiency. “We’re only using what we need, when we need it.” Farmers now can precisely record downforce or diseased crop locations with pinpoint accuracy, all with the help global positioning. Some apps are even cloud-based, and can securely back up data off-site for ease of mind. APPS CONTINUED ON C26
possibilities of an insect outbreak. “It’s going to add to the management skills, and the farmer himself won’t have to go out there and scout,” Hawkins said. About 7 or 8 years ago, technology like auto steer or field censors might have been too expen-
sive for farmers, but as the market demand increased and the technology advanced, they’ve made their way to farms. “It’s been nonstop advancement,” Hawkins said. “We have just seen a sea change in the way that farmers utilize technology.”
Analyst: ‘Mythological’ view of corporate farming not true FARM
CONTINUED FROM C12
Bureau of Labor Statistics projects an 11 percent increase in U.S. employment between 2012 and 2022, but a 3 percent decrease in agricultural workers. The advancements in technology were also met with ownership changes. Between 2007 and 2012, there was an increase in the number of Illinois farms between 50 and 260 acres, and in farms with more than 2,000 acres,
according to the 2012 Census of Agriculture from the U.S. Department of Agriculture. The state saw a decrease in farms between 260 and 2,000 acres during that period. Those farms aren’t disappearing, Doherty said, they’re consolidating, and not necessarily consolidating with big corporations. He said there’s a “mythological” view of corporate farming that isn’t true. Investor-owned corporations are not interested in buying farmland
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and trying to farm, he said, when existing farm families are willing to Norman do it with a Walzer lower rate of return than publicly traded companies would want for their shareholders. The increase in farms being listed as corporations, Doherty said, comes from farmers doing it for tax purposes. There’s also a large portion of farms owned by a
family that rents out the land. Walzer said that when farmers retire, they sell their farms to neighbors if family is not ready to take over the operation. And those neighboring farmers, because of the technological advances, can farm more land than 15 or 20 years ago. The average age of the primary farm operator in Illinois in 2012 was 56.3, according to the Census on Agriculture. That’s an increase from 54.5 in 2007 and 53.5 in 2002. Those farmers – the
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large, grain-producing farmers – are just one of two types of farmers that, Walzer said, have seen changes in the past 7 years or so, with the other being small, organic or niche farms. As college students from farming areas graduated college and entered a poor job market, Walzer said, some returned to farming communities to start smaller operations, capitalizing on an increased interest in organic food. But, unlike their counterparts on large, established
farms, smaller operation farmers saw some difficulties breaking into the industry, Walzer said, because the farm economy has been good as of late in raising land values, and technology adds to the price of equipment. There are signs, however, that the market for the organic farmers is improving. Doherty said the sale of organic products tripled in the past few years to $26 million nationally, but still remains a small portion of the $17 billion agriculture industry.
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C18 • Sauk Valley Media
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Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | BANKING & FINANCE
Balancing new tools and old-fashioned service Bankers: Customer service still important in a high-tech world BY ANGEL SIERRA asierra@saukvalley.com 800-798-4085, ext. 5695 @_angelsierra
A
local bank is where a community keeps its money, offering sanctuary for hardearned cash. And like the customers they serve, banks must keep up with the times if they want to do business. Financial institutions in the Sauk Valley increasingly are using innovation on the technological front to enhance business, continuously evaluating new tools as they expand. But service remains the cornerstone for brickand-mortar branches, which includes client recognition and a commitment to understanding customer needs. “We feel the need to maintain a personal touch,” said Dirk Meminger, 55, president and CEO of Sauk Valley Bank, which employs a concept he refers to as the community business model. Engagement and processing customer feedback are keys to that strategy for what must be a pillar in the community. That type of heartsand-minds approach distinguishes local banks from the heavyweights. “You have to think beyond ‘We’re a bank’ to ‘We’re your financial partner,’” Meminger said.
Digital on the rise If anything comes from the pursuit of convenience, it’s the advancement in online tools to provide clients better service. “We just kicked off mobile banking this morning,” Mike Hickey, 60, president at First National Bank in Amboy, said this month. The bank also is on Facebook. The bank’s app has basic features such as alerts, bill pay, money transfer, and balance lookup, and a few more bells and whistles will be included in a future rollout, he said. “Just like anybody, a bank has to keep up with society,” Hickey said. “It’s the world of competition. You have to adjust.” He keeps to a simple philosophy: online and mobile are where people want to do business, so that is where banks must go. But he admits that to bring those features to market is a bit like trying to hit a moving target. “It’s very hard for us smaller banks to keep up,” he conceded. “None of that is free.” At the retail level, online bill pay alone has “crushed” foot traffic, he noted, and that’s on top of the decades-long decline of walk-in customers, which started
WHAT DO WE THINK? Jim Dunn, opinion page editor: Gaining access to one’s money and doing things with it is so much easier than before. I was issued my first ATM card in 1978 as a graduate student in Milwaukee, Wisconsin. I thought it was a tremendous leap forward. No longer did I have to conform my schedule to a bank’s business hours in order to withdraw cash. Today’s online banking, through personal computers and smart phones, is a quantum leap forward from those early ATM days. Couple that with debit cards and direct-deposited paychecks, and the paper checks and deposit slips from a checking account could become dusty relics of the past. Yet, as old-fashioned as
Alex T. Paschal/apaschal@saukvalley.com
Mike Hickey, president of First National Bank in Amboy, talks about the need for small banks to go digital while maintaining a personal touch with customers. “Just like anybody, a bank has to keep up with society,” Hickey said. “It’s the world of competition. You have to adjust.” when drive-thrus and drive-up ATM access first arrived. Hickey plans for a world that will see even fewer ATMs as consolidation and better business strategies are sought. It’s a “never-ending trend of where we’re going,” he said.
A generational bridge It plays to banks’ strengths to live inside the community model,
‘‘
’’
We feel the need to maintain a personal touch. You have to think beyond ‘We’re a bank’ to ‘We’re your financial partner.’ Dirk Meminger, president and CEO of Sauk Valley Bank
and by betting the farm on face-to-face contact, any new technology serves to make those personal connections seamless. Technology is carving the banking and finance landscape through ease
of access (such as mobile apps and online features), but the biggest impact has been on routine interaction, such as deposits and inquiries. “It’s a sign of the times,” Sauk Valley Bank’s Meminger said.
A mobile app launched about a year ago and has been well received, he said, after bank officials noticed a shift in how people access the bank’s website. BALANCING CONTINUED ON C19
How has your banking been changed by technology in the past 10-20 years?
it sounds, we retain a bank account through which we do no electronic banking. Why? It is simply so easy to access and spend one’s money these days, I wanted an account where the money wasn’t instantly available at a screen tap or mouse click. Having to actually write a check and travel to the bank offers time for second thoughts: Do we really need to spend such-andsuch amount? According to a Feb. 28 History2 Channel program, people with ATM cards spend 25 percent more than those who don’t have them. If the statistic similarly applies to online banking, perhaps it’s not so strange to keep some money in an account where you have to jump through a few hoops to get your hands on it.
Christopher Heimerman, night news editor: I remember rolling my eyes as my mother continued to write out checks for groceries. I was 18, and the check card was truly taking hold as the biggest solution and problem we all kept in our wallets. Then things started picking up speed. I soon checked balances online and made the occasional transfer (some of them downright ill-advised, for things I didn’t need. But it was so easy!). But I was a college kid working a lot of hours and still failing to keep my head above water. There were no 100 percent, Florida-gold good decisions. When I graduated, got engaged and finally established a budget,
my online banking transformed into a super-powerful tool. I set up each and every bill I had to pay on time, and in full. With great power comes great responsibility. Today, I can deposit a check with my smartphone. I can move money to savings on the fly. Like so many other aspects of life touched by technology, once harnessed, online banking became an arrow in my quiver, rather than one in my foot. Angel Sierra, online editor: Frankly, 20 years ago, I was 10 years old, and 10 years ago I didn’t have a smartphone or a checking account. But as a millennial, I grew up with computers that weren’t the size of a storage room, and slid
right in to the Internet age. From MySpace to Meebo to Facebook to WhatsApp, we’ll continue to see advancements in communication as the technology affords it. The biggest trend I’m excited about is in the proliferation of mobile and cashless payment systems. It’s here to stay, and it’s environment-friendly and efficient. Products from Apple and Google now lead in the electronic payment arena, and it’s just a matter of convincing consumers that it’s OK not to carry cash or write a check. In the end, businesses will go where the demand requires, and if you add in a generation that fluently speaks tech, the future is bright.
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Sauk Valley Media • C19
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | BANKING & FINANCE
Small banks rely on big banks for research, development BALANCING
personal service to perpetuate businesses and farms for years to come,” the report added.
CONTINUED FROM C18
The metrics will inevitably edge up if they follow the growth curve, but the relevant part of the equation is what local organizations do to position themselves as the customer base changes. Maintaining a foothold in the online arena seems to be critical as the evolution moves forward. A 2009 Pew Research study found that only 38 percent of millennials banked online in 2005, but the number jumped to 57 percent in 2008. In the next generational wave, 71 percent of teens had a cellphone in 2009, up from 45 percent in 2004. Millennials may be fluent in today’s technology, but when Meminger looks at the generational transfer, there’s still a desire for human interaction, and that won’t go away, he said. “You can’t count on technology to provide a competitive advantage,” Meminger said. Sauk Valley Bank still operates a call center, however old-fashioned that might be considered, he said, but it’s the people who are most important. Foot traffic has come down only “nominally” since the app launch, he added. Because the primary demographic maintains and prefers accounts locally, mobile and online transactions will have a slim effect on the core business, Meminger said.
A transitional period
Alex T. Paschal/apaschal@saukvalley.com
Amboy First National Bank President Mike Hickey displays the bank’s new banking app on his smartphone. And although the national outlook has made a dramatic pivot, technology isn’t a cureall, and most often carries a steep price, Meminger said. Smaller banks and credit unions often can’t afford to front the money for immediate online expansion, so they rely on big banks for research and development, he said. It’s a balancing act that local banks must evaluate as they seek gains, and a component that leadership teams look at as part of the business strategy. “The regulatory and legislative environments are currently the most hostile I have noted in my many years in banking,” Meminger said in a 2012 third-quarter financial report. “We recognize the increased costs resulting from additional regula-
tions and are working diligently at finding efficiencies to help offset anticipated costs. “Sauk Valley Bank has
been successful in assisting individuals grow their businesses and farming operations, and now we want to provide the same
Much like newspapers and old-guard media organizations, banks that don’t experiment and evolve will lose business or fail – at least that’s the consensus among industry experts such as Diane S. Docking, a finance professor at Northern Illinois University. But in the end, it boils down to business basics, and a strong drive to understand the client and their needs. “Banks are required to know the customer, and [that] they know me by name,” Docking said. Her experience as a certified public accountant and bank auditor
through powerhouse firm KPMG makes her familiar with the inner workings of community banks, credit unions, and larger enterprises. Docking has noticed the change within the banking and finance industry toward expedited service, and although she’s a proponent of the convenience that emerging technologies offer, she prefers a safer route. “I like my [banking decisions] to be made locally,” she said, citing several recent online security data breaches. Docking came up through the ranks in a time when things weren’t as complicated, and vividly remembers when ATMs first popped up on street corners and supermarkets. BANKS CONTINUED ON C26
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WHAT DO WE THINK? How has your banking been changed by technology in the past 10-20 years? Christi Warren, cops & courts reporter: Being 23, I’ve never really known a banking world where I couldn’t pay my bills through an application on my iPhone. I use an app called Mint to track my finances: what I spend and where I spend it. It shows me graphs that let me see where my spending has gone, where it’s increasing, and allows me to set budgets for different aspects of my life. If I go over my budget, my rating is red. If I do well, my rating is green. (Perhaps this is why I’m always momentarily confused when people say things like, “in the black,” or “in the red.” ) Mint also lets me set up reminders for when bills are due. When a notification says my ComEd bill is due, I switch over to my ComEd app, check how much money I owe, then switch out of it, into my US Bank app (because ComEd charges a small fee to pay a bill through its app), and transfer money from my checking account straight to my ComEd account – all through my phone. If I owe someone money, I open up Venmo, another app on my phone, type in how much I owe them, and it automatically transfers from my bank account to their bank account. I only use a checkbook these days to pay my rent, and even that, I believe, is on its way out. I have a few friends whose landlords ask that they pay through online banking platforms. I eagerly await the day. Jermaine Pigee, education and business reporter: Gone are the days when people have to take their paycheck to the bank on Friday to get it cashed. With direct deposit, there is no need for a paper check anymore. For people who are strapped for cash, their paychecks
are in their account before they step foot into work on Friday. Also, with online banking, the days of balancing a checkbook are gone. Since everything is online, its really easy to keep track of expenses and it’s much easier to keep an eye on fraudulent activity. Then, there is online bill pay. I have the ability to pay my bills through my bank online and on my iPhone. It’s much easier to keep track of everything. I no longer have to write a check and drop it in the mailbox. With the new iPhone 6, there is a feature called Apple Pay. I can put my credit card information in my phone and when it comes time to pay for something, I can place my iPhone near a contactless card reader until a checkmark appears. If this catches on, credit cards could become obsolete. Matt Mencarini, Dixon reporter: I can’t remember the last time I walked into a bank. It might have been about 3 years ago when I moved from Tennessee to Florida and closed my account with a bank. The smartphone apps let me pay bills, transfer money between accounts, and even deposit checks. The technology has allowed me to live in the Sauk Valley for nearly 2 years with my bank not having a branch or ATM closer than Rockford. I rarely write checks, and even when I do, I have the option to make a payment online or on an app and have my bank mail a check to the recipient. This is a trend I don’t think will be reversed. Larry Lough, executive editor: Online banking! Are you kidding? It’s the greatest invention since Genesis. Maybe before that.
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C20 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | INFRASTRUCTURE Potholes fill with snow melt at the intersection of Fifth Avenue and West Sixth Street in Rock Falls in March 2014. (Philip Marruffo/pmarruffo@saukvalley.com)
MEAN STREETS Higher gas prices led to better mileage in cars, but what does it mean for road departments?
O
BY CHRISTI WARREN cwarren@saukvalley.com 800-798-4085, ext. 5521 @SeaWarren
ften, it’s hard to see change in some areas of society. But when it comes to infrastructure, changes are a little more concrete – literally and figuratively. Since the turn of the century, things have only gotten harder for highway departments to continue offering the services residents expect from them. That list of services includes things small and big: from maintaining sidewalks to roads, or cutting grass and clearing roads. If you feel like roads are worse off now, or perhaps your streets aren’t quite as clear during snowstorms as they used to be, you’d be right.
So, why? Engineers for Whiteside and Lee counties, Russ Renner and Dave Anderson, point to the same causes: an increase in cost of materials, and a decrease in available funds. When paired together, those facts don’t make for a very prosperous future for any part of life; but when it’s the highway department, the results affect you in a very visceral way. “When you’re talking about roads, you’re typically talking about asphalt,” Renner said. “So, that’s directly related to oil, ... and the price has certainly gone up significantly since around probably 2005.” He said that before prices started to jump, that average cost of asphalt was in the mid-to-upper-20-dollar range per ton. “Now when we bid, if we get below
$70 a ton, we’re pretty happy,” Renner said. Road departments used to be able to cover a mile of road with about 3 inches of asphalt when doing repairs. Now they can afford to use only about a 1-inch coating. At 1,200 tons of asphalt per mile, that can mean about $85,000 a mile to repave an average 24-foot-wide road. “Most of the time now we’re doing some kind of a maintenance overlay,” Renner said. “You do a thinner mix as much as you can possibly feel comfortable. You’re just doing less miles of road, or you’re doing a lot more maintenance.” A few years before Renner came to Whiteside County, he worked in the Lee County Highway Department. ROAD CONTINUED ON C21
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Sauk Valley Media • C21
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | INFRASTRUCTURE
‘We’re getting less money now than 10 years ago’ ROAD
CONTINUED FROM C20
“When I left Lee County, I was on a schedule of putting 2 or 3 inches of hot mix ... being able to do the paved roads about every 17 years,” he said. “Now I’m to the point here – it’s not the same county, but it’s pretty similar in size and number of roads – and now I have them scheduled to be done every 30 years.” Lee County’s Anderson is having similar issues with pricing, as are all highway departments in the state, he said. “The cost of your materials have risen fairly dramatically since 2000,” Anderson said. Hot mix asphalt for Lee County has gone up nearly 76 percent, he said. He used to be able to get asphalt for about $33 a ton, he said. “Now we’re up to the
Michael Krabbenhoeft/mkrabbenhoeft@saukvalley.com
A car drives around a pothole near the intersection of East Fourth Street and Seventeenth Avenue in Sterling last month. upper $50s and lower $60s.” The price of salt, too, has been on the rise. This year, Lee County paid $105 a ton. In 2000, it cost $31. Though, he admits, this year was a bit of an anomaly, the price has still spiked. “In the last 15 years, things have gone up
With water testing, you don’t fix what isn’t broken STERLING – While most aspects of government change as time goes on, when it comes to making sure your water is clean, things have pretty much stayed the same. Rock Falls’ Water Department relies on the Morrison Community Hospital Laboratory for test results. There, Ronelle Burmeister, the lab’s manager, tests for nitrate and coliform bacteria. Burmeister has worked in labs since the early ’80s, though this is the first time she’s worked in a lab where water testing happens. “We look for nitrate, which is something you don’t want to have,” she said. “It’s a pretty good indicator of water quality and how much bacteria can possibly grow in there. You don’t want to have any nitrate in your water. ... If you have nitrate in your water and tiny babies drink that, they can’t break that down and it causes a lot of problems.” In testing for coliform bacteria, lab workers look for bacterial contamination from things like E Coli that might have come from farm runoff or things of that nature, she said. The method used at the Morrison hospital is the same method you would find at pretty much any other water lab in the state, she said, and it’s been that way for decades. “It really is pretty much gold standard,” she said. – Christi Warren
substantially,” Anderson said, “and really, our revenues have remained flat for the most part.”
Motor Fuel Tax A large reason for that flat line in revenue, and even a decline, is the motor fuel tax. “It’s a little bit of a drop every year, and it’s directly related to when the gas prices went up, and people stopped buying gas as much,” Renner said. “The motor fuel tax
of their fuel usage – switching to hybrid and electric cars, buying cars with better mileage, driving less, and using public transportation more frequently – the amount of money in the motor fuel tax fund is not able to replenish itself. “We’re getting less
money now than we were 10 years ago, and when you add that to the fact that the costs of the roadwork are two or three times what it was, it limits what we can do now,” Renner said. “I think most people don’t realize that.” MONEY CONTINUED ON C22
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C22 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | INFRASTRUCTURE
Recycling a popular way of extending life of roads MONEY
CONTINUED FROM C21
In Lee County, the department’s motor fuel tax allotment had been about $770,000 a year. In 2015, the allotment was $721,000, Anderson said. So what’s to be done? Other states have tried pilot programs for a vehicle-miles-traveled tax – the more you drive, the more you pay. The most notable example is Oregon. Instead of taxing people for their fuel
consumption, as most states do, the vehiclemiles-traveled model taxes drivers based on the miles logged on the road. The tax proposals vary, from charging drivers a flat fee to charging a variable fee, which fluctuates depending on the time of day, road conditions, and overall impact of the vehicle on the road. It seems promising. But, Anderson said, “Of course, when you put the GPS device in a car, then you have Big Brother concerns.”
Weight limits
Another thing causing problems for highway departments since the turn of the century, Renner said, is the state’s decision to increase the weight limit on roads to 80,000 pounds, unless otherwise marked, “Before, statutorily, it was limited to 73,280 pounds,” he said. “It doesn’t sound like a huge difference, ... but it is.” Increased weight can cause increased stress – and thus, wear and tear – on roads.
Problem solving
Because highway departments are increasingly less capable of building and fixing roads, they’re forced to find ways to extend the life of existing roads. One of the most popular methods is road recycling, in which the top 4 inches of pavement are ground up, oil is stirred into the mixture, then, it’s relaid and sealed. It’s a cost-saving measure, and it helps roads to last longer and require less maintenance than they otherwise would.
Laying down layers of asphalt, Renner said, only puts a bandage on the true problem: road cracking. Tearing up the cracks to begin with, and then using that same mix in the relaying of the roads, improves them at minimal cost. “I think that’s probably going to be something that’s a lot more common because you’re making use of what you have,” Renner said. “It’s about extending the life of the pavements as long as you possibly can. Even
now, just putting a thick hot mix surface over the top of it is almost cost prohibitive.” Anderson, too, is constantly looking for ways to reduce costs. In recent years, his department has lost two staff positions, and has had to do away with a snow plow. “We took a couple of our lower priority items and had to cut back on them,” he said. “You list everything you do, and group it together, and start with the bottom of your priorities, and cut from there.”
WHAT DO WE THINK? What is the biggest change, positive or negative, that you have seen in local infrastructure in the past 10 years? Jim Dunn, opinion page editor: If I were to write a book about my favorite local infrastructure improvements, it would be titled “The Bridges of the Rock River Valley.” Most recently, we witnessed the $27 million replacement of the First Avenue Bridge that links Sterling and Rock Falls. This modern structure, completed in November 2012, will serve Twin Cities residents for decades to come. Not only that, but traffic driving on state Route 40 uses the bridge, so regional travel to the north and south has been positively affected. Earlier “chapters” in my book would deal with the replacement of two bridges in Dixon: the Galena Avenue bridge in 2002, and the Peoria Avenue bridge in 2005. As in the case of the former First Avenue bridge in SterlingRock Falls, the old Galena and Peoria avenue bridges were sadly in need of repair. And now, both of those relatively new Dixon bridges have a decade or more of service under their belts, having greatly enhanced the safety and smooth flow of traffic. That is particularly true for the Galena Avenue bridge, which also carries traffic from two state Routes (2 and 26) and U.S. Route 52.
Angel Sierra, online editor: My colleague Jim Dunn is spot on when he discusses the transformation that bridge renovations have revealed in the Sauk Valley. I helped former Sauk Valley Media reporter David Giuliani 3 years ago with a video that he wanted to include with a story about the First Avenue Bridge. Specifically, his story focused on the sobering thought that the bridge was one of 11 that were considered structurally deficient in Whiteside County. According to the state, it was (and still is) one of the most traveled. We met with Mahmoud Etemadi, a bridge maintenance engineer, who gave us a closer look at the support structures of the old bridge, and we saw the deep disrepair. Another improvement in the area was the extensive brownfield cleanup in Rock Falls, and while I don’t consider it an infrastructure addition, it needed to get done. Christi Warren, cops & courts reporter: I have to say, being a recent transplant, I have no idea. But, from my reporting, I can tell you that locally, and, in fact, statewide: It’s not getting better. The demand is staying the same, the cost is getting higher, but the
funding is dropping. Repaving a road now costs about three times what it did 10 years ago. A large chunk of funding for road projects comes from the motor fuel tax. Well, the thing about the motor fuel tax is that it’s not a percentage of the price of gasoline; it’s a set per-gallon amount, which means it doesn’t matter whether gas is $4 a gallon or $1.95 a gallon, the state still gets the same amount of money. And because people are increasingly looking for ways to reduce their gasoline intake (hybrid and electric cars, etc., which I whole-heartedly support), it’s having a negative impact on the amount of money available for road repairs, and is a problem that every county engineer in the state is struggling with. It means that roads are being repaired less frequently, and instead of being truly repaired, they’re just having a bandage placed on top. Jermaine Pigee, education and business reporter: I’ve been in this area for only about 8 months, so I cannot offer an opinion around the Sauk Valley. From a Chicagoland perspective, it’s good to see the state expand the toll roads. In 2007, the Interstate 355 tollway expanded to connect
Interstate 80 to Interstate 55 at a cost of about $730 million. I used to live in Will County, one of the fastest growing counties in the state. The population is expected to exceed $1.1 million by 2030. The expansion improved regional mobility by providing a direct route between Interstate 55 and Interstate 80, which also reduces travel time. I have family that lives throughout Joliet, so the expansion cut my travel time in half. It seems like there is always construction on Interstate 88. Over the years, Interstate 88 has seen an increase in travelers. Because of that, the road has seen multiple expansion projects over the past ten years. Lane expansion has taken place all over the road, which includes Finley Road to Washington Street and Washington Street to Route 59, among others. On these roads, the highway was expanded from six to eight lanes, which helps relieve congestion. Currently, the tollway is getting asphalt overlay in different places and the pavement at different crossroad bridges is currently being reconstructed. The construction is designed to improve riding surfaces and extend pavement life. Matt Mencarini, Dixon reporter: I think there’s some good and bad here. I think over-
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all, the infrastructure throughout the country and in the Sauk Valley has gotten worse. It’s a story that most are probably aware of – the country’s infrastructure is aging and we don’t have the money or decide to make the necessary repairs. But I’ve seen some pockets where it’s improved, although they’re limited to small areas. I’ve been to a few airports in the past 5 years that make O’Hare look as bad, cramped and rundown as it really is. In all of these nicer airports, there is more room, more sunlight and, most of all, more technology. The Minneapolis airport has iPads for public use all over the place. In Atlanta, there’s a strip of outlets every three or four seats. These might not be considered traditional infrastructure elements, but I think airports are important parts of the infrastructure, and I think it’s good there are are some positives. Larry Lough, executive editor: Infrastructure investment is woefully inadequate virtually everywhere, including the Sauk Valley. But that was the case 20 years ago, too. People want better roads and bridges, but most don’t want to pay for them. Until that paradox is solved, things won’t get even marginally better.
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Sauk Valley Media • C23
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | TRANSPORTATION
Growth counting on land, rail, air transport Moving people, goods key to development BY KATHLEEN A. SCHULTZ kschultz@saukvalley.com 800-798-4085, ext. 5535 @KathleenSchul10
Changes are afoot for the various ways to get in to, out of, and around the Sauk Valley. Starting this summer, folks will be able to hop a Greyhound out of Dixon and head for Chicago, DeKalb, or the Quad Cities. In August, Lee-Ogle Transportation Service (LOTS) announced it was heading up a 2-year pilot program to offer bus service from Chicago to Davenport, Iowa, with stops along the way, including Dixon. It’s part of a federally funded Intercity Bus program aimed at connecting rural areas and small cities with larger cities. Other stops will include Naperville/Aurora, DeKalb (at Northern Illinois University and the oasis stop on Interstate 88), Rochelle, and Moline. It’s a program that Jamie Blatti, executive director of the Lee-Ogle Transportation Service, hopes to see become permanent. The federal government, which decided the state wasn’t spending enough money on rural transportation programs, is funding the route from Chicago to Davenport, and LOTS will partner with Greyhound Lines, she said.
Local service offered LOTS and Whiteside County Public Transportation are among 11 regional systems state-
wide offering rides closer to home. Both agencies have seen an increase in ridership, in part because of the recent rocky economy, and also to a push for more public awareness of what used to be popularly referred to as “the senior buses.” Tori McDaniel, Whiteside’s executive director, has said she expects annual ridership in the county to more than triple in the next 15 years, from about 39,000 a year in 2013 to more than 123,000 in 2030. LOTS ridership hit 120,000 in 2013; Blatti projected 160,000 rides in 2030. For now though, ridership is stable, because the size of the fleet – 35 vehicles – has not changed. Although the agency constantly sees new riders, it can’t always meet everyone’s demands. Changes in the administration and coordination of the various transportation agencies are in the works, which will streamline services to increase access and make longer trips even easier.
State network coming State and federal mandates are calling for even more improvements. Within the next few years, Illinois residents “will have access to transportation that covers every square inch of the state ... without ever stepping foot in your car,” Blatti has said. That is, if the funding remains available. For Blatti, Gov. Bruce Rauner’s proposed budget cuts – he has suggested slicing her $800,000 budget in half – have hit a nerve.
Philip Marruffo/pmarruffo@saukvalley.com
Lee/-Ogle Transportation Service driver Al Reece looks over his route information during a stop at Sauk Valley Community College in 2013.
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C24 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | TRANSPORTATION
Rauner reviewing a raft of transportation projects MOVING
CONTINUED FROM C23
“It’s so extreme, ... and it makes no sense,” she said. Not only has the federal government determined that such service is vital to rural residents, but public transportation also is a proven boost to the economy – studies show that $1 spent on local transportation generates $4 in revenue, she said. She also has her eye on more regional connectivity. “One thing that I’m preparing for is to see Lee, Ogle, LaSalle, Whiteside, and Carroll [counties] combine into one transportation agency,” Blatti has said. She expects talks on a potential long-term partnership to begin sometime after June 2016, when the current contract with the Ottawa public transportation agency ends.
Holding the train For those who hate navigating toll booths and battling traffic, plans have been in the works for several years for a passenger line slated to
run through Rockford on the way to Chicago. Amtrak service between Rockford and Chicago – and eventually, Dubuque, Iowa, on Union Pacific Railroad, with stops in Elgin, Huntley and Belvidere – was expected to begin late this year. When it eventually was to be continued west to Dubuque, stops were planned for Freeport, which is closest to most Sauk Valley communities, and Galena. That multimilliondollar project, however, along with many others in the state, “is on hold and under review,” said Guy Trigdell, IDOT’s deputy director of communications. It’s among a raft of projects to which Gov. Rauner has applied the brakes, as his new administration reviews the state budget, which is facing a $1.6 billion deficit. It may not come as much of a blow to folks in the Sauk Valley, who can always bite the bullet and make the commute to The Windy City, around 2 hours from most local points. It’s also possible to hop the Metra in Auro-
WHAT DO WE THINK? Jim Dunn, opinion page editor: Although I am not a regular user of passenger rail service, I support it philosophically. A Chicago-to-Rockford commuter train line would be a boon to Winnebago County and northern Ogle County, I would think. If that line proved a success, why not extend passenger rail service straight west from Chicago to DeKalb, Rochelle, Dixon, Sterling-Rock Falls, Morrison and Clinton, Iowa? The railroad tracks exist. A lot of Sauk Valleyans who already commute eastward on Interstate 88 to work might use it. The existing passenger rail service from Chicago toward the southwest (Mendota, Princeton, Kewanee, Galesburg,
On the bus Projections for Lee-Ogle and Whiteside transportation systems Lee-Ogle Transportation System 2013 2030 Annual ridership 120,000 160,000 Vehicle miles 800,000 1,200,000 Vehicle hours 24,000 36,000 Number of vehicles 29 45 Expenses $1,200,000 $2,000,000 Whiteside County Public Transportation 2013 2030 Annual ridership 39,251 123,179 Vehicle miles 257,070 806,796 Vehicle hours 15,000 56,561 Number of vehicles 13 41 Expenses $597,309 $1,874,612 Sources: Jamie Blatti, executive director of the Lee-Ogle Transportation System and administrator of the North Central Area Transit in LaSalle County, and Tori McDaniel, executive director of Whiteside County Public Transportation.
ra, or Amtrak in Princeton: The train travel time to Chi-town is about the same, but the aggravation may be less. And for those heading south in a hurry, one segment of the Chicagoto-St. Louis high-speed corridor is running at 110 mph; more segments were expected to be up and running by the end of the year, but they too are likely on hold for now, pending further review. In 2012, a handful of mayors dreamed
of a high-speed commuter rail zooming 110 mph along Interstate 90 between downtown Rockford and O’Hare International Airport. “As mayors representing approximately 1 million residents who live and/or commute along the Rockford-to-O’HareAirport corridor, we are united in our support of high-quality passenger rail service along the Jane Addams Tollway to alleviate traffic congestion and support long-term
economic prosperity and environmental sustainability,” the six mayors said in a letter to the Illinois Department of Transportation that October. The idea died on the vine: The ridership projections didn’t justify the cost of such a line – there were not enough users in Rockford alone – and it would require too many stops along the way to pick up riders for such short distance, IDOT officials said. Go to www.idot.illinois. gov and click on travel information, then passenger service, to keep tabs on the progress of all rail projects.
At the airports Whether a community has an airport can be a major factor in economic development. The Sauk Valley is fortunate in that it has two airports – one on Rock Falls, one in Dixon – that area economic development leaders have said will be key to the area’s future growth. In Dixon, a seven-member task force has been created to examine the role the Dixon Municipal Air-
port can play. Its task will be to study other small, rural airports and see how commercial, retail and airport-related businesses might be attracted, Mayor Jim Burke has said. “We have to look ahead,” he said. “Probably in another 20 years, that airport is going to be very, very important. ... That airport is kind of an unrealized asset.” The airport’s long-range plan calls for tearing down one of the hangars and building a bigger one – there’s good money to be made renting space and selling fuel to plane owners. That plan also proposes a new 5,000foot runway, the length most insurance companies require as a minimum for corporate jets. Now, those mid-size corporate jets can land at Rochelle and Whiteside County airports, but must bypass Dixon. The city also looked up the road and saw how Rochelle had managed to turn its sleepy little airport into a bustling business and tourist attraction in less than a decade. PROJECTS CONTINUED ON C25
Would you use high-speed rail service or a Chicago-to-Rockford commuter train line?
Macomb and Quincy) is heavily used. And I’ll tell you, I enjoyed meeting our son, Jeff, during his return visit from overseas, at the Princeton train station in December. I arrived early that evening, listened to several freight trains rumble past the depot’s waiting room, and then, when the Illinois Zephyr’s imminent arrival was announced, walked outside in the cold with other people to meet it. Before us, the shiny, silvery train rolled to a stop, passengers stepped off on the opposite side, the train sounded its horn and moved on, and there, among three dozen suitcase- and backpack-toting travelers crossing the tracks toward us, was my smiling son. For me, it’s a pleasant memory. High-speed rail service? I might use
the Chicago-to-St. Louis line sometime, if the logistics worked out, as one of our daughters lives down in Cardinal Country. Christopher Heimerman, night news editor: I’ll pretty much piggy-back on Jim Dunn’s response. While I don’t see myself riding a passenger train anytime soon, I believe it can be very valuable. And there’s something romantic about rail service, not unlike the way many of us cling to books and (gulp) newspapers. What’s more heart-warming than seeing family reunited at the station? And to springboard off of that, I think it would be pretty neat, once the girls are old enough, to take a train to St. Louis or Chicago for a family vacation. If nothing else, maybe it will help keep all of us
grounded in a timeless tradition. Angel Sierra, online editor: I would love to see commuter trains return to the Sauk Valley. During World War II, there was a station down near The Depot in Sterling, and there’s good evidence that the bar gets the name from that piece of history. Most of my traveling is done by car: going to work, visiting family, and driving to the airport in Chicago to catch a plane, but a commuter train would bring to the table another option. Amtrak, for example, runs its state corridor trains over 6,000 miles of track, and serves 23 states, according to its website. High-speed rail service in the Sauk Valley would bring jobs, and it opens another tourism lane to the area.
Tuesday, March 24, 2015
www.saukvalley.com
Sauk Valley Media • C25
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | TRANSPORTATION
Business, tourism growth needed for more passenger traffic at airports PROJECTS
CONTINUED FROM C24
Rochelle’s then-City Manager Ken Alberts decided his city would take a bigger role with the airport and help to facilitate public-private partnerships. City officials made changes to the airport’s management and became more aggressive in its pursuit of businesses. It built a $1 million hangar, which now houses Rochelle Avionics, a fullservice airplane repair business. Then, about 3 years ago, Chicagoland Skydiving Center built a $2 million hangar and has a restaurant, bar and sand volleyball pits. During the skydiving off-season, November through April,
the hangar is used as a banquet hall that can hold 500 people. Dixon took note. Its task force will look not only at the airport itself, but also at the surrounding area, where plenty of opportunities for retail and commercial development abound, Burke said. The city owns 11 acres at the west end of the airport. The land has water and sewer lines, and Burke said it’s an ideal spot for development. Whiteside County Airport officials aren’t expecting a big increase in traffic anytime soon, in part because nearby Rockford Chicago International Airport and Quad Cities International Airport handle the bulk of area cargo shipping. Unless the Sauk Valley
becomes a bigger business center, or tourism becomes more of a draw, passenger traffic at either airport isn’t likely to pick up. Officials there also are pinning their hopes on more development in the rural areas around the airport; on attracting more rentals and tenants through more aggressive marketing in the suburbs; and on selling more fuel. Whiteside County Airport, manager Mike Dowell has said, is a good place to park a plane, and easily can accommodate “90 to 95 percent of all the business aircraft out there” in the region. Those who move their aircraft from the burbs to the county can halve their fuel costs and cut rental fees 60 percent, he has said.
Airport impact
WHAT DO WE THINK?
Below are the number of jobs created and the economic impact of a variety of area airports, according to a study released In December 2012 by the Illinois Department of Transportation. Jobs created includes those created by capital improvement projects and visitor spending.
Would you use high-speed rail service or a Chicago-toRockford commuter train line?
Dixon Municipal Charles R. Walgreen Field Total employment: 59 jobs Total economic output: $5,492,600 Erie Airpark Ultralight Flightpark Total employment: 9 jobs Total economic output: $332,400 Ogle County Airport in Mount Morris Total employment: 6 jobs Total economic output: $94,600 Rochelle Municipal Koritz Field Total employment: 86 jobs Total economic output: $7,858,700 Whiteside County Joseph H. Bittorf Field in Rock Falls Total employment: 57 jobs Total economic output: $5,466,600 Online Go to to www.illinoisairportsmeanbusiness.com to read the full study.
Matt Mencarini, Dixon reporter: I think a high-speed trail from Chicago to Rockford could be great for the Sauk Valley and for this part of the state. The more connected the area is, the better. It will allow residents out here to get into Chicago quickly, and possibly commute. And as a result, some who live in Chicago now might be tempted to move to the Sauk Valley, where cost of living is significantly lower. It will also mean that people living in Chicago can make easier trips to the rest of the state, which could increase the Sauk Valley’s prominence as a destination for tourists. Larry Lough, executive editor: America’s love affair (obsession) with cars has, for the past century, inhibited development of mass transit, which has so many advantages over personal transportation. But most Americans covet the individual freedom afforded by a car. Good luck with anything that interferes with that.
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C26 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
DIRECTIONS 2015: THE 21ST CENTURY SAUK VALLEY | BANKING & FINANCE/AGRICULTURE
GPS allows precision farming United States ‘so far behind in banking it’s sad’ APPS
CONTINUED FROM C17
BANKS
CONTINUED FROM C19
But it’s through her work at the university that Docking has noticed the metamorphosis in students who take her classes. “I’m surprised at the number of students who don’t have any cash,” she said. “I think we’re seeing the seeds of something new developing.” It’s an exciting time as vendors, businesses, and customers begin to use cashless processing, she said, but her primary concern is the state of finance networks and computer systems. She highlights Sweden and Finland, two shining examples of where the future lies.
In Sweden, for example, four out of five purchases are entirely paperless, Niklas Arvidsson said in a November 2014 report in the Guardian. Arvidsson is an associate professor at Sweden’s Royal Institute of Technology. “The United States is so far behind in banking it’s sad,” Docking said. “Some European countries don’t even write checks.”
A local approach Dean Ahlers, president/ CEO of Sterling Federal Bank, is upbeat about the drive to provide what customers are asking for – it’s just a matter of finding the right balance. One of the biggest benefits that banks in the Sauk Valley have is that they are more insulated than
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“Field360 Tools” by Pioneer offers precipitation and growth stage estimators, and “Field360 Plantability” is a seed/planting calculator. Precision Planting, a company purchased by Monsanto in 2012 and one of Encirca’s primary competitors, produces a tablet-only service called “FieldView” and “FieldView Plus.” The apps are similar to other high-end programs in that they provide detailed scouting reports and highlight deficiencies, but also display color-coded terrain in high-definition, and offer remote management and collaboration, a popular add-on
with the premium service. Mobile Farm Manager by John Deere is another that sprouted in 2012. The app is free to download from the App Store, but appears to have weaker support as a stand-alone program and requires an activation code and sync from Deere’s proprietary software that the customer might have installed on his home computer. A subscription might be required to use the variety of apps available, but some have free or basic versions after an account is established. Burrs has seen a transition in her 7 years with Farm Bureau, to a point where farmers now have mountains of information and data about their fields, and some
businesses exist simply to make sense of it all, helping growers identify deficient or underperforming crops. “GPS allows them to be more precise, [and] through soil sampling and tests on their fields, they can apply fertilizer to just that specific part of the field,” Burrs said. Targeting swaths or sections never was an option before the technology came along; it certainly involved approximation, and not accuracy, as is now available on the market, she said. Mobile farming apps for smartphones and tablets “are a gamechanger,” Burrs said, because the more information a farmer has about his farm, the better he can grow his crop and become a better steward of the land.
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www.saukvalley.com
Sauk Valley Media • C27
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Triple the Power of your Charitable Gift in 2015 with the Sterling Schools Foundation! The Sterling Schools Foundation is pleased to announce that it has recently been included as a beneficiary of an estate gift, which will be used, in part, to provide significant matching funds. SSF will be putting those matching funds to work as part of its 25th anniversary celebration during 2015. “As of right now, all 2015 donations SSF receives for the Sterling Public Schools 1-to-1 computer program, Centennial Auditorium fund, and the Blue & Gold fund will be matched two-for-one,” said SSF Executive Director Jim Spencer. Through the SSF 25th Anniversary Matching Campaign, for every dollar you donate, THREE dollars will go to support your chosen program. “We have enough money in the matching grant fund to match up to $500,000 in donations, but the donations must be made by the end of 2015,” said Spencer. “We are excited by this unexpected opportunity to maximize the already great support we receive from our current donors and hope others choose to support our mission this year as well. With this campaign, the goal will be to grow our three biggest programs by a total of $1,500,000, of which $1,000,000 has already been set aside, just awaiting community and alumni support.” In August 2014, Sterling Public Schools launched its 1-to-1 computer program. All Sterling High School students now have their very own Apple MacBook Air computer to use at school and home until they graduate. Money donated to the SSF 1-to-1 Computer Fund through this new fundraising opportunity will help expand the program though all grade levels, beginning with Challand Middle School. “The 1-to-1 launch at Sterling High School has been well received by students, staff, and parents,” said SPS superintendent Tad Everett. “We are anxious to expand the program district-wide, but tight budgets and our volatile state political environment leaves us in a state of financial uncertainty. With the matching grant and donor support through the fundraising campaign, we can work together to do what is right for our community and bring the future of education to all of our students now.” The cost to provide one student computer is $625. With the limited time 2-for-1 matching opportunity, a gift of the price of one computer during 2015 will provide THREE student computers. The Blue & Gold alumni newsletter and Centennial Auditorium are two of the most visible components of the SSF mission. The Blue & Gold alumni newsletter is mailed to nearly 13,000 households worldwide annually, while the eBlue & Gold is emailed to over 7,000 addresses every month. “It is truly a rarity for a public high school to offer publications like these on such a regular basis, and we are proud to be able to offer the service,” said Spencer. “The Blue & Gold is nearly as old as the foundation, and the additional financial support through this campaign this year can really help us put it on solid financial ground for many years to come.” Centennial Auditorium, 100% owned and funded by the Sterling Schools Foundation, will celebrate its 17th birthday in 2015. During the original campaign to raise the money for the auditorium, SSF told donors that its goal was to never use taxpayer dollars to build or operate the facility. “So far, we have been able to live up to that goal, but that will be more difficult to do as the years pass and costs rise,” said Paul Osborn, SSF secretary and 20-year member of the SSF board of directors. “That is why we need your financial support through this campaign this year. A second generation of performers will soon be stepping on that stage. The foundation wants to ensure that stage continues to be a state-of-the-art performance venue for many more generations to come.”
To make a donation to the SSF 25th Anniversary Matching Campaign, please visit www.SterlingSchoolsFoundation.org/matching. You may also mail your donation to: SSF Attn: Matching PO Box 1046 Sterling, IL 61081
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The Sterling Schools Foundation is a 501c3 organization, so your donation to the SSF 25th Anniversary Matching Campaign would be tax-deductible as allowed by law.
C28 • Sauk Valley Media
www.saukvalley.com
Tuesday, March 24, 2015
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