SVM-SS3_03252014

Directions 2014 A Marketing Supplement of Sauk Valley Media

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Vision 2030

A look at the Sauk Valley of the future Employment Prospects

The Workplace of Tomorrow

Agricultural Outlook

What needs to be done to attract new employers to the Sauk Valley?

Who will do it?

Technology already is having an impact in the retail and manufacturing workplaces.

What other changes are ahead?

Farmers have all kinds of technology available to them. Those who succeed will choose wisely which gadgets to use.

Banking Changes Ahead

Housing Forecast

The Roads to 2030

Online banking is changing the financial services landscape. The race is now on for banks to get their mobile infrastructure in place.

The Sauk Valley is slowly recovering from the burst of the housing bubble. What is the outlook for home sales in the future?

From streets to highways to rail to airports, how prepared for the future is the infrastructure of the Sauk Valley?

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VISION 2030 | EMPLOYMENT

New jobs demand new skills

Alex T. Paschal/apaschal@saukvalley.com

Employees at the Nippon Sharyo plant in Rochelle help make a fleet of 160 “Highliner� rail cars for Metra Electric Line passengers. Nippon Sharyo is among a number of entities that have brought, or are bringing, new jobs to the Sauk Valley.

While most of the old big companies are gone, the future is far from bleak

BY KATHLEEN A. SCHULTZ kschultz@saukvalley.com

EXT

Northwestern Steel and Wire. Lawrence Bros. Hardware. National Manufacturing. General Electric. QuadGraphics. Tyco. Those are among the big companies that have folded up their tents and left the Sauk Valley in recent years.

There’s a rhythm to the ebb and flow of jobs in the Sauk Valley that seems to be in harmony with the rest of rural America. Low-skilled workers lose out to overseas competition and automation. Looking for lower production costs, big manufacturers leave the country and take their jobs with them.

Jobs that move in to replace them tend also to be low-skilled. Wages don’t keep pace with inflation. Fewer and fewer employees work a 40-hour week.

Benefits cost more, provide less. There are fewer union jobs, and some unions have lost their teeth.

The picture is not so very bleak, though.

UPM Raflatac. Walmart Distribution Center. Sterling Rail Services.

SGS Refrigeration Inc. Nippon Sharyo.

Thomson Prison. Those are the entities that have brought, or are bringing, new jobs to the area.

John Thompson, president and CEO of the Lee County Industrial Development Association, thinks the outlook for the area is fairly bright.

“We are a manufacturing area, that’s one of our major strengths, and that’s not going to be going away,� Thompson said. “In fact, that’s probably coming back,� thanks to a rise in costs for overseas labor and transportation, and a rise in the cost of bringing goods back into the U.S. “A lot of that stuff that’s changed over time has driven a lot of [manufacturers] to come back,� he said. And the U.S. is “still the leader in developing techniques and in productivity.�

The Sauk Valley also has a strong agribusiness base, with plenty of potential for growth, Thompson said.

And its proximity to good transportation routes – road, rail, air and water –

makes the area attractive to businesses such as distribution centers as well as manufacturers. “It’s easy to get things here,� Thompson noted. “It’s easy to ship things from here.�

When large employers more into an area, other businesses follow – service and retail businesses, nonprofits, “a whole supporting cast� of players, he said.

For example, the now federally funded Thomson Prison is projected to bring about 1,100 jobs of all kinds to the area when it opens in the next few years.

JOBS CONTINUED ON C4

Dixon ‌

“A Place To Come Home To�

Visit the Dixon Welcome Center for area tourist information, brochures and maps. Dixon gifts and souvenirs, Ronald Reagan history and gift items, and the free to the public Illinois Lincoln Highway Coalition interpretive exhibit.

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VISION 2030 | EMPLOYMENT

Playing to the region’s strengths for jobs Transportation network, quality of life among selling points to employers

BY KATHLEEN A. SCHULTZ KSCHULTZ SAUKVALLEY COM

EXT

It’s a Three Musketeers mentality: One for all and all for one.

In these tough times, cooperation is key.

Officials need to think regionally as well as locally, and act as a united front when trying to attract jobs.

In addition to city and county governments, there are dozens of economic development and tourism agencies, all employing various techniques – social media, commercials, publications, point people – to get the word out that the Sauk Valley is a great place to live and work, and all sharing information, making referrals and forwarding inquiries.

John Thompson, president and CEO of the Lee County Industrial Development Association and of the Dixon Area Chamber of Commerce, says

his agencies are fielding about a half-dozen inquiries a month from various businesses “of all shapes and sizes� asking about the area.

If he doesn’t have what they’re looking for, he refers them to other state or local entities that might.

The Sauk Valley has its fair share of attractive qualities, including proximity to large metropolitan marketplaces, with their pool of customers and vendors, although that can be “a doubleedged sword,� Thompson said.

On the one hand, we’re close to them; on the other hand, they’re close to us. “Our strengths, in many ways, are our weaknesses,� he said.

Businesses, however, take many things into consideration when deciding where to locate.

For one, they want to be accessible to their customers and to make

Philip Marruffo/pmarruffo@suakvalley.com

Gary Ristau and his daughter Kate Askegaard and grandson Colin paddle along the Rock River at Lowell Park in Dixon. The recreational opportunities offered by having the Rock River make the Sauk Valley attractive to employers. products near their customers, Thompson said.

To that end, “we do have a very strong transportation network, and an excellent highway system,� he said.

Waterways such as the

Mississippi and Illinois rivers and the Great Lakes are easily accessible, and there are many regional air transport options, including the UPS hub in Rockford.

Land also is relatively

cheap and abundant when compared to acreage in urban areas, he said.

Quality of life also is a big selling point. Many people want a rural lifestyle, which they can get

here, while still being near urban cultural centers like Chicago, Rockford and the Quad Cities.

There also are many beautiful state parks and campsites in the area, along with the recreational opportunties the Rock River offers, Thompson said.

All of those elements are things employers take into consideration. “It’s like dropping a stone in a pool of water. ... You see all the ripples going out and you see all these intersecting site parameters: quality of life, available health care, education, parks, housing, and on and on and on. ... Lots of things come into play,� he said. “No one place in the world has everything that everybody wants [but] our ability to offer up those amenities to companies is really good.�

STRENGTHS CONTINUED ON C6

Economic development leaders offer advice to job seekers JOBS

CONTINUED FROM C3

That’s good news for the area’s large pool of people looking for work.

The Pathfinders is a Dallas-based consulting firm that focuses on strategic planning in economic development and corporate site selection.

In 2012, it did a study of five northwest Illinois counties – Whiteside, Lee, Ogle, Carroll and Stephenson – that looked at the available workforce.

At the time, there were about 9,500 unemployed

residents actively looking for work, and about 10,000 workers designated as “underemployed� – basically, those looking to improve their position.

Most expressed a desire to retain their country lifestyle, to stay in the area, even to keep their work commute to 20 minutes or less.

So, what can a person who likes the rural way of life that the Sauk Valley has to offer do to make sure he or she is employed, now and into 2030 and beyond?

Here’s some advice culled from a variety of Sauk Valley economic

development leaders, educators and government officials, most of whom list bringing jobs to the area as their No. 1 priority, and who talk to employers regularly about what they look for in a good worker.

1. Want a job? Act like it. Do not come to a job interview in SpongeBob SquarePants pajama bottoms, a hoodie and flip-flops. Do not text, or answer your cellphone, in the middle of an interview.

2. Be prepared. Arrive on time, with a rĂŠsumĂŠ, or a list of information such as your job history

and skills, in hand. Be willing to be trained in something new.

3. Pass the drug test.

4. Keep idiotic Facebook postings to a minimum. You will be Googled.

Those are the noduh basics. Here’s the toughie, aimed at young people coming out of high school and trying to figure out their lives.

5. Don’t always listen to your parents. You do not necessarily need to get a 4-year college degree to get a good job. Consider a trade school, an apprenticeship, and internship

with a local employer.

That’s a message Betty Steinert, Whiteside County’s economic development administrator, really wants Sauk Valley parents and their children to embrace. “I have always believed that jobs in a trade, such as bricklayer, plumber, mechanic and machinist, are some of the best jobs you can have,� Steinert said. “We all need our kitchen faucets to work, cars to run, foundations fixed or constructed, sometime in our life.�

That’s not to say that

college shouldn’t be considered. But it doesn’t mean you’re a failure if you don’t go, which might be a hard thing for some parents to hear.

Often, kids who attend college come away with degrees for which there are no jobs in a rural area, or debts that rural paychecks can’t cover. They should think about what aspect of their lives they really want to focus on – work, family, leisure time – then decide what direction they want their careers to take.

Plumbers and HVAC repairmen make good money, too, after all.

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VISION 2030 | EMPLOYMENT

Community teamwork key to attracting jobs

BY BETTY J. STEINERT 7HITESIDE #OUNTY %CONOMIC $EVELOPMENT %NTERPRISE :ONE !DMINISTRATOR

O

ur riverfronts used to be full of industry, with large buildings looming over the river’s edge. This was not a bad thing for those who lived in those times when the buildings were full of people working with their hands and making a good wage.

Yes, the work was hard, but isn’t that what living in America is all about – or was – hard work to make a living and a safe, good home life for your family? I believe that our citizens still believe that and still want to work for an honest wage.

How will we accomplish that? Yes, I said we, because it will take more than a few people to cooperate and work on

the ideas and help work on them to make this area a place where companies want to locate and to make sure we have a ready workforce to create, pack, distribute and sell their products.

Or maybe it is to provide a service, and what kind of service, we don’t know what that may be in 2030!

I do know we have a lot of good people working to clean up and redevelop our riverfronts, to make them more pleasing to the eye and to receive attention from developers who want to invest their money in progressive communities and regions.

We need to keep up with the times, work with our schools, and not only educate our students to go to college but also

educate them on the trades.

I have always believed that jobs in Betty J. a trade, such Steinert as bricklayer, plumber, mechanic and machinist, are some of the best jobs you can have. We all need our kitchen faucets to work, cars to run, foundations fixed or constructed sometime in our life.

I also want to give kudos to the Whiteside Area Career Center for its efforts and work on the new CEO program, which is helping show students that there are careers out there that need filling and pay good wages.

It is hard to make pre-

dictions on job growth and the economy, but one thing I do know is it is continuously fluctuating and we must be ready for change that comes quickly. Today the markets are up and companies are hiring; tomorrow the markets are down and companies are laying off employees.

What I am getting at is, just because the economy may be down today or next week doesn’t mean that is the time not to continue to work on improving it.

With our good hardworking citizens with great imaginations and ideas, I see us moving far toward change that is needed.

We need to find our niche to make our community and region attractive not only to

manufacturing but tourism, agriculture, technology and beyond.

Support the efforts of your community and county to make the changes and to stay in tune with the times; it will not be easy, nor will it just happen.

Our steel mill is gone; we have to look beyond that now and go into the future with new ideas and technology. Most of the larger companies want to be located in large metropolitan areas, with multiple interstate roads, railroads and barge access, but does that mean we shouldn’t look to manufacturing for our area? No! We have many great manufacturers that employ our citizens, pay good wages, provide good benefits, and sup-

port our tax base. We need to continue to support them, encourage them to remain here, and grow here; in other words, we need to be ready to help them when necessary and to make sure we have the workforce prepared to fill the positions they need.

I know we have those efforts already in place and encourage that continued cooperation.

I may not have given a number of companies, employees or new investment that will be created by 2030, but maybe I gave a small bit of insight into what it takes to make a community or region prosper, grow and create jobs.

Cooperation, effort and hard work are within our vocabulary and ability to attain.

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VISION 2030 | EMPLOYMENT DEVELOPMENT OF NEW JOBS

THOSE WHOSE LONGTIME VOCATIONS ARE NO LONGER VIABLE MUST BE WILLING TO ADAPT !S FELLOW NEWS EDITOR $AVID 'IULIANI ALLUDED TO THE MEANS ARE RIGHT HERE IN THE 3AUK 6ALLEY AT THE COMMUNITY COLLEGE )T S NOT EASY BUT IT COULD BE QUITE VALUABLE TO REMEMBER THAT WHEN ONE WINDOW CLOSES ANOTHER TENDS TO OPEN 7HAT IS IT THAT YOU VE WANTED TO DO FOR YEARS BUT HAVEN T HAD THE IMPETUS TO LEAVE THE JOB YOU VE OCCUPIED FOR SO LONG 0REPARE YOURSELF

AND GO DO IT

3MARTPHONES AND WEARABLE COMPUTER TECHNOLOGY WILL ADVANCE ALLOWING PEOPLE TO DO EVEN MORE WORK AWAY FROM THE OFFICE "UT EXPERTISE FLEXIBILITY

AND TEAMWORK SKILLS WON T GO OUT OF STYLE

n HAVING EMPLOYERS WHO ACCEPT THE CHANGING TIMES AND ADAPT EFFICIENTLY AND HAVING EDUCATORS WHO PREPARE STUDENTS FOR THE NEW ECONOMY 4HE KEY THEN

IS HAVING EMPLOYERS AND EDUCATORS WORK TOGETHER %MPLOYERS MUST TELL EDUCATORS WHAT THEY NEED FROM THE WORKFORCE AND EDUCATORS MUST TEACH STUDENTS TO MEET THOSE NEEDS

INSTILLING THAT NOW

Pam Eggemeier, reporter: %DUCATION AND TECHNOLOGY WILL CONTINUE TO BE THE INTERNAL KEYS TO GROWTH BUT WE MUST NOT FORGET THAT THIS IS A GLOBAL ECONOMY n COMPLETE WITH Jeff Rogers, managENORMOUS OPPORTUNITIES ing editor: !S HE OFTEN AND CONSTRAINTS 7E MUST What do SVM IS MY COLLEAGUE $AVID UNDERSTAND IT ON A GLOBAL newsroom members 'IULIANI IS EXACTLY RIGHT SCALE IN ORDER TO FUNCTION think will be of local WHEN HE SAYS THAT THE FATE WITHIN IT importance regardOF JOB PROSPECTS IN A COMMatt Mencarini, !S AN EXAMPLE AFTER ing employment MUNITY RESTS WITH THE EDUreporter: !DAPT OR DIE DECADES OF LOSING MANUCATION ITS SCHOOLS PROVIDE 4HAT S GOING TO BE THE FACTURING JOBS OVERSEAS

between now and THE WORKFORCE #OMPANIES NAME OF THE GAME 4HE THE TREND IS BEGINNING TO 2030?

AND JOBS ARE CHANGING EXPECTATION IN WILL REVERSE 4HE JOBS GRADUALLY FAST THESE DAYS AND WILL NOT BE TO KNOW TWO SKILLS

LOST OVER MANY DECADES David Giuliani, news CHANGE EVEN MORE RAPIDLY BUT THREE OR FOUR THAT YOU HAVE IMPROVED THE ECONOeditor: !MERICAN WORKJim Dunn, opinion IN THE FUTURE CAN DO WITHIN THE INDUSTRY MIES OF MANY OTHER COUNERS ARE AMONG THE MOST page editor: ! PROP$URING AND AFTER THE 4HIS ALREADY IS THE CASE TO TRIES 4HE INCREASED STANPRODUCTIVE IN THE WORLD ERLY TRAINED AND MOTIVATED 'REAT $EPRESSION THE SOME EXTENT TODAY DARD OF LIVING BROUGHT TO 4HAT S BECAUSE WE ARE WORKFORCE WILL BE VITAL TO 5NITED 3TATES SHIFTED FROM )N JOURNALISM THE MORE THOSE COUNTRIES IS CLOSING EQUIPPED WITH SOME OF THE THE LOCAL EMPLOYMENT PICAN AGRICULTURAL ECONOMY YOU CAN DO THE MORE THE WAGE GAP AND NOW BEST TECHNOLOGY TURE IN TO ONE DRIVEN BY MANUFAC- VALUABLE YOU ARE )F YOU MANY OF THESE JOBS ARE -ANUFACTURING IN PAR!S TECHNOLOGY ADVANCES TURING 4ODAY THE 5NITED CAN WRITE CRISP CLEAN COPY COMING BACK HOME TICULAR REPRESENTS THIS PEOPLE WILL NEED TO KNOW 3TATES AND THE WORLD ARE ON DEADLINE THAT S GREAT (ISTORY ALSO TELLS US THAT TREND %ACH FACTORY NEEDS HOW IT WORKS AND HOW GOING THROUGH A CHANGE "UT SO CAN A LOT OF PEOPLE EPOCHAL CHANGE WHETHER IT FEWER EMPLOYEES THESE TO APPLY IT TO THE TASK AT AS GRAND IN SCALE 4HE NEW #AN YOU ALSO TAKE PHOTOS BE SOCIAL POLITICAL OR ECODAYS WITH ROBOTS DOING HAND EVEN MORE THAN ECONOMY IS BEING DRIVEN AND VIDEO AND BRING IN NOMIC USUALLY IS MET WITH A MUCH OF THE WORK 4HESE NOW 3CHOOLS AND EMPLOY- BY SERVICE TECHNOLOGY

DATA AND VISUAL ELEMENTS

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OTHER JOB IS NOW AND WILL TIPPED HEAVILY IN THE FAVOR 4HAT S WHERE EDUCATION FILM THE CHARACTERS HAD TOWARD THIS CHANGE 4HE BE IN 3PECIALIZAOF CORPORATE !MERICA COMES IN 3AUK 6ALLEY KNOWLEDGE TRAINING AND FASTER WE ADAPT THE QUICK- TION WILL BE REPLACED WITH 7ITH OUR POPULATION ON #OMMUNITY #OLLEGE AND SKILLS SUCH AS HOW TO FLY A ER WE WILL RECOVER VERSATILITY AND THE EDUTHE DECLINE THE BABY LOCAL SCHOOLS MUST BE ARM HELICOPTER DOWNLOADED TO (OW FAST WE ADAPT CATIONAL AND JOB TRAINING BOOMERS SOON EXITING THE IN ARM WITH THE BUSINESS THEIR BRAINS IN A FLASH DEPENDS ON TWO THINGS INSTITUTIONS NEED TO START WORKFORCE AND EMPLOYERS COMMUNITY

WHAT DO WE THINK?

Christopher Heimerman, news editor: 7HEN ) WAS LAID OFF AT THE 'REEN "AY 7IS 0RESS 'AZETTE ) WAS CRUSHED .OT SO MUCH FOR MYSELF

BUT FOR THE TALENTED THOROUGHLY TENURED PEOPLE WHO ALSO WERE LEAVING THE BUILDING WITH CARDBOARD BOXES CHOCK FULL OF ACCOLADES AND PERSONAL EFFECTS /BVIOUSLY IT WAS A BLOW TO MY EGO BUT ) KNEW ) COULD REINVENT MYSELF !ND QUICKLY 3HOULD THE GOVERNMENT DELIVER ON ITS

Rochelle offers ‘onestop shop’ STRENGTHS

CONTINUED FROM C4

Over in Ogle County, Rochelle has been undergoing a nice little economic development boomlet, which Mark Delhotal, the city’s airport manager and vice president of railroad operations, attributes in part to a change in city leadership that came with a renewed focus on economic expansion.

Growth also has been spurred in part by the city’s location, near two major interstates, and to the Union Pacific Railroad’s busy intermodal center, which “is really what’s leading to the development of the city,�

Delhotal said.

Another of the city’s business-friendly pluses: Rochelle handles all of its infrastructure – water, sewer and electric – so companies looking to locate or expand don’t have to go to a bunch of utilities or other entities to get the job done, Delhotal said. “When you come to Rochelle, it’s a one-stop shop – you go to the council,� he said.

The city recently landed a second Nippon Sharyo rail car manufacturing plant, and is in the process of expanding an airport runway to accommodate increased corporate jet traffic from a variety of Fortune 500 companies located there, he said.

He anticipates that, with growth coming in the U.S. energy field and manufacturers returning to the area, expansion in Rochelle will continue. “I think the intermodal is going to continue to get busier, and I think the whole city in general is in a growth mode that will continue.�

ALREADY FINDING IT DIFFICULT TO FIND SKILLED WORKERS DON T BE SURPRISED IF THERE IS AN ORGANIZED EFFORT OF SOME KIND THAT TIPS THE SCALES BACK IN THE OTHER DIRECTION Christi Warren, reporter: %DUCATION S NEW ACCEPTANCE OF n AND UNDERSTANDING OF n THE FACT THAT MAYBE ALL STUDENTS AREN T BOUND FOR YEARS OF COLLEGE IS GOING TO BODE WELL FOR THE 3AUK 6ALLEY

AND WILL HOPEFULLY KEEP KIDS EMPLOYED IN LOCAL JOBS .OT THAT ) DON T THINK HIGHER EDUCATION IS A GREAT THING ) DEFINITELY DO "UT THE IDEA OF INTRODUCING STUDENTS AT A YOUNGER AGE TO A WIDE VARIETY OF LOCAL JOB PROSPECTS RATHER THAN HAVING THEM FOR EXAMPLE HEADING TO A YEAR LIBERAL ARTS SCHOOL AND THEN THINKING ABOUT IT IS GOING TO PROMOTE GROWTH IN THE AREA 4HE 7HITESIDE !REA #AREER #ENTER S #%/ PROGRAM IS A GREAT EXAMPLE OF THIS KIND OF THINKING )NTRODUCING LOCAL KIDS TO LOCAL EMPLOYMENT OPPORTUNITIES AT A YOUNG AGE MAKES IT SO MUCH EASIER TO FOCUS THEIR STUDIES ON WHAT S REALLY IMPORTANT FOR THEIR FUTURE CAREERS AND WILL SAVE THEM SOME MONEY IN THE LONG RUN TOO

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Tuesday, March 25, 2014

www.saukvalley.com

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VISION 2030 | THE WORKPLACE

Retail, manufacturing take advantage of tech Product, sales processes made more efficient

BY CHRISTI WARREN cwarren@saukvalley.com

EXT

When the company that Matt Prescott used to take food orders and send them to his restaurantsâ&#x20AC;&#x2122; kitchens went belly up, he looked to the future before buying a new system.

That type of system is called a â&#x20AC;&#x153;point of salesâ&#x20AC;? system, he explained, or POS. Prescottâ&#x20AC;&#x2122;s parents, Bob and Jan, first opened the Candlelight Inn at 101 W. Third St. in downtown Sterling in July 1967. That location closed its doors in 1989, but since then, the Prescott family has opened four other locations: in Sterling; Rock Falls; Clinton, Iowa; and, until recently, Peoria.

The Rock Falls restaurant, Matt explained, was the first to use the new POS system, supplied by a company called Digital Dining.

Each server uses a handheld device, similar in looks to an iPhone or an Android phone, that is used to take orders and send them â&#x20AC;&#x201C; electronically straight to the kitchen.

The new system, which the restaurants have been using since 2009, enables servers to cut about 5 or 6 minutes of wait time for customers, Prescott said, and to simplify things for the kitchen staff.

Servers used to submit orders from multiple table all at the same

Alex T. Paschal/apaschal@saukvalley.com

Amy Fenwick, owner of Roxieâ&#x20AC;&#x2122;s in Dixon, sits in front of her popular mirror wall. The store carries a unique blend of new and old gifts.

SVM file photos

ABOVE: Matthew Prescott (left) with his parents, Jan and Bob Prescott, at Candlelight Inn in Sterling. The Prescotts also have locations in Rock Falls and Clinton, Iowa. RIGHT: While technology is used to operate the Sterling location of Candlelight Inn, the decor remains traditional and cozy.

time, bombarding the kitchen. But this new system allows the kitchen to receive orders as they are taken to operate at a more constant speed in preparing food.

Servers can also use the devices to swipe credit cards for payment right at the table Each handheld device originally cost about $1,500, Prescott said, but, since then, the price has dropped significantly.

Digital Dining also helps Prescott to keep track of his inventory and simplify ordering.

A task that, in the past, wouldâ&#x20AC;&#x2122;ve taken time away from other duties, is now as simple as pointing and clicking. â&#x20AC;&#x153;Sunday afternoon or Monday morning, Iâ&#x20AC;&#x2122;d walk into the restaurant and figure out what I needed to order,â&#x20AC;?

Prescott said. â&#x20AC;&#x153;Well now, Sunday afternoon I

punch five buttons and it tells me. â&#x20AC;&#x153;Say you order a vodka and tonic,â&#x20AC;? he said. â&#x20AC;&#x153;It knows that it takes 1.5 ounces of vodka to make a vodka and tonic, and it takes that out of my inventory. If you order a bottle of Bud Light, it takes it out of the inventory. At the end of the week, it says, Hereâ&#x20AC;&#x2122;s everything you took out, and says, Hereâ&#x20AC;&#x2122;s what you need.â&#x20AC;?

The new system also

provides the restaurant with credit card security for customers. Prescott said food service is the only business where employees remove a credit card from the customerâ&#x20AC;&#x2122;s sight to charge it.

That, he said, provides all kinds of opportunities for fraud.

Digital Dining, with its pay-at-the-table option, removes that possibility for fraud. â&#x20AC;&#x153;I think youâ&#x20AC;&#x2122;re going to start seeing more payat-the-table options,â&#x20AC;? he said.

Digital Dining also tracks gift card sales and anyone in the restaurantâ&#x20AC;&#x2122;s frequent diner program. â&#x20AC;&#x153;It speeds up the process,â&#x20AC;? Prescott said. â&#x20AC;&#x153;It allows us to spend more time with our customers, and less time punching on a computer.â&#x20AC;?

â&#x20AC;&#x2DC;Itâ&#x20AC;&#x2122;d be sillyâ&#x20AC;&#x2122; not to use technology On a recent weekday afternoon at Roxieâ&#x20AC;&#x2122;s, a new boutique at Peoria

Avenue and First Street in Dixon, owner Amy Fenwick was using a Square device attached to her iPhone to run credit cards. Her normal credit card machine was down, she said. She uses Square as a backup.

Square is a free, quarter-sized creditcard reader that can be plugged into the headphone terminal of any Apple iOS or Android device. An app goes along with it, and thatâ&#x20AC;&#x2122;s free, too.

Square can accept credit card payments, issue refunds, apply tips and discounts, and even redeem punch cards.

The key is that Square gets 2.75 percent of every charge. The remainder of the sale is deposited into the ownerâ&#x20AC;&#x2122;s bank account the next day.

The beauty of Square is that itâ&#x20AC;&#x2122;s portable â&#x20AC;&#x201C; if Fenwick ever decides to set up a table at a fair, for example, all sheâ&#x20AC;&#x2122;ll need to bring along is her iPhone.

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VISION 2030 | THE WORKPLACE

Sophisticated machinery requires more skilled workers TECH

CONTINUED FROM C7

Roxieâ&#x20AC;&#x2122;s is also using technology to increase the size of its clientele â&#x20AC;&#x201C; currently just through Facebook, but Fenwick plans to set up an Instagram account soon.

She sees Instagram, a photo-sharing application for smartphones, as being key to accessing a young demographic. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a very social-media savvy individual in my personal life, and I just need to slowly integrate Roxieâ&#x20AC;&#x2122;s into that world,â&#x20AC;? she said. â&#x20AC;&#x153;Instagram is huge, especially with the younger demographic. Itâ&#x20AC;&#x2122;s â&#x20AC;&#x201C; technically itâ&#x20AC;&#x2122;s free advertising, and thatâ&#x20AC;&#x2122;s huge! Itâ&#x20AC;&#x2122;d be silly of me not to take advantage of it.â&#x20AC;?

Roxieâ&#x20AC;&#x2122;s Facebook page is also a huge asset, Fenwick said, as is advertising on Facebook. â&#x20AC;&#x153;Say I post a picture of an item, and say itâ&#x20AC;&#x2122;s a piece of furniture, because those items on Facebook usually get very popular very fast,â&#x20AC;?

Fenwick said. â&#x20AC;&#x153;People talk about it all the time. Theyâ&#x20AC;&#x2122;ll come in and say, â&#x20AC;&#x2DC;Oh, man, that piece I saw on Facebook is gone!â&#x20AC;&#x2122; and Iâ&#x20AC;&#x2122;m

WHAT DO WE THINK? How do SVM newsroom members think any particular business sector will be impacted, positively or negatively, by changes between now and 2030?

like, â&#x20AC;&#x2DC;Yeah, once itâ&#x20AC;&#x2122;s on Facebook, give yourself maybe a day or two and itâ&#x20AC;&#x2122;ll be gone.â&#x20AC;&#x2122;â&#x20AC;?

Tech emphasis today on product desgn At Frantz Manufacturing, the greatest advancements in technology, said president and COO John Gvozdjak, can be seen in the design and testing of the companyâ&#x20AC;&#x2122;s products.

Robotics are, apparently, old news; itâ&#x20AC;&#x2122;s the new software that engineers are using thatâ&#x20AC;&#x2122;s revolutionizing the way they do business.

Though robotics has been around for a while, the implementation in manufacturing is worth mentioning because it did significantly alter manufacturing. â&#x20AC;&#x153;One of the biggest implications is the skills gap [in the labor force],â&#x20AC;?

Gvozdjak said. â&#x20AC;&#x153;Because, when you have robotics, and you have technology, and you have computerization in your factory, then your employees need to be skilled to be able to manage that, to be able to operate that.

So thatâ&#x20AC;&#x2122;s one of the biggest things â&#x20AC;&#x201C; employees that are hired today are Christopher Heimerman, news editor: 36- SPORTS EDITOR $AN 7OESSNER OFTEN JOKINGLY ASKS

h/+ NOW WHERE S THAT @FINISH PAGES BUTTON v -AY THERE NEVER BE SUCH AN OPTION FOR THE SAKE OF THIS PAGE CHIMP S LIVELIHOOD "UT WE ALL MUST BE AGILE ENOUGH TO ADAPT AS TECHNOLOGY TAKES TASKS OUT OF HUMAN HANDS $ESPITE THE PROSPECT OF REMOVING HUMAN ERROR

HOWEVER ONE OF THE BIGGEST REASONS ) LOVE LIVING IN THE 3AUK 6ALLEY IS THAT THERE IS A TENDENCY TO CHERISH PERSONAL TOUCH THAT

required to have more and more skilled background to operate sophisticated machinery.â&#x20AC;?

Jobs that once didnâ&#x20AC;&#x2122;t require much schooling do now. â&#x20AC;&#x153;The skills for manufacturing in general have been scarce because a lot of young people have abandoned considering manufacturing as a longterm career,â&#x20AC;?

Gvozdjak said. â&#x20AC;&#x153;But it is still here. Manufacturing is still growing in the United States. Itâ&#x20AC;&#x2122;s just that itâ&#x20AC;&#x2122;s requiring more higher-skilled employees than it perhaps did in the past. Itâ&#x20AC;&#x2122;s going to require greater education, beyond high school.

Itâ&#x20AC;&#x2122;s going to require certification from community colleges, associate degrees, things like that. â&#x20AC;&#x153;An assembly type person needs to operate a multimilliondollar machine today, as opposed to simply putting things in a package.â&#x20AC;?

In 2012, the average earnings for manufacturing employees was $54,332 in the counties of Whiteside, Lee, Ogle, Carroll and Stephenson, according to a study by Northern Illinois Universityâ&#x20AC;&#x2122;s Center for Governmental Studies.

Those earnings were higher than jobs in both government ($46,480) and services ($27,888).

Frantz Manufacturing Co., which celebrated its 100th anniversary in 2009, makes steel ball products and parts for conveyor systems. â&#x20AC;&#x153;Robotics is here,â&#x20AC;?

Gvozdjak said. â&#x20AC;&#x153;We have robotics; we have million-dollar machines here that allow us to assemble very accurately with very little labor, which keeps us competitive, very productive, and weâ&#x20AC;&#x2122;re going to do more of that. ... Where thereâ&#x20AC;&#x2122;s a greater emphasis of technology is in the design of our products, how we make products. â&#x20AC;&#x153;To make a bearing,â&#x20AC;? he explained, holding up one and rotating it, â&#x20AC;&#x153;to make this bearing as a prototype is a huge cost â&#x20AC;&#x201C; just to make one, just to see if it will work. So, the question is, How can you make something and prototype it and then tweak it? You can draw it, but when you draw it on a board or whatever, you donâ&#x20AC;&#x2122;t know if itâ&#x20AC;&#x2122;s going to work. â&#x20AC;&#x153;Computers nowadays are helping us understand whether this bearing will work because we put it on the computer,

and then the computer allows us to simulate the rolling of this bearing, the stresses that this bearing can take. â&#x20AC;&#x153;That is where I see the greatest impact of technology for somebody like Frantz. Itâ&#x20AC;&#x2122;s in the design of the products, in the testing of the products, in the prototyping of products that weâ&#x20AC;&#x2122;re seeing the greatest impact of technology in our world.â&#x20AC;?

The software that Frantz uses is called Solidworks.

Majid Jabber, a product development engineer at Frantz, explained how it works.

Instead of drawing up designs and then physically creating them for testing purposes, a costly and time-consuming process, modern-day engineers can now do the same thing using just a computer.

The product is designed in Solidworks, and then transferred into another piece of software called Solidworks simulator, where force can be applied to different places on the product to see how well it works, to see its pressure points and assess what the highest possible force the item could take. The software

EVEN THE MOST ADVANCED OF APPS AND POINT OF SALE SYSTEMS CAN T EMULATE 7HILE DIGITAL TECHNOLOGY PHASES OUT STORES n A STROLL THROUGH THE MALL CAN BE DEPRESSING n TAKE SOLACE IN THE FACT THAT A FRIENDLY

KNOWLEDGEABLE EMPLOYEE WILL ALWAYS BE EMPLOYABLE IN SMALLTOWN !MERICA

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DESKS AND CUBES DESIGNATED FOR A SPECIFIC PERSON OR POSITION 4HEY HAVE hWORK SPACESv AND ENCOURAGE

THEIR EMPLOYEES TO WORK AND THINK FREELY

Matt Mencarini, reporter: 7ORKPLACES ARE ABOUT CREATING AN ATMOSPHERE THAT FOSTERS AS MUCH PRODUCTION AS POSSIBLE WHATEVER THE MEASURE OF PRODUCTION MIGHT BE ) HOPE THE AGE OF CUBICLES WILL BE BEHIND US

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also allows designers to simulate how much wear and tear products can take before having to be replaced. From there, designs are adjusted and perfected.

Gvozdjak also looks forward to a day when manufactured items will include sensors that can tell its owners its status â&#x20AC;&#x201C; and how soon it will need to be replaced.

Early versions of that idea, called â&#x20AC;&#x153;the internet of things,â&#x20AC;? is used in cars. Itâ&#x20AC;&#x2122;s the same idea as when a light comes on to indicate itâ&#x20AC;&#x2122;s time to change the oil, or the car is out of coolant. â&#x20AC;&#x153;The product will tell you itâ&#x20AC;&#x2122;s failing,â&#x20AC;? Gvozdjak said. â&#x20AC;&#x153;It will not be turning as well and something inside the product will be communicating that to some computer somewhere saying, â&#x20AC;&#x2DC;Hey, Iâ&#x20AC;&#x2122;m slowing down here, and Iâ&#x20AC;&#x2122;m not working as well.â&#x20AC;&#x2122; And then we will know before the product fails â&#x20AC;&#x201C; the customer will know before the product fails that itâ&#x20AC;&#x2122;s time to replace it. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s something thatâ&#x20AC;&#x2122;s new and exciting.

It will come to consumers, and it will also come to manufacturing products as well.â&#x20AC;?

THROUGH THE GOVERNMENT n PAID FOR THROUGH TAXES n OR SOME OTHER FASHION 4HAT S Christi Warren, report- GOING TO OPEN A LOT OF DOORS

er: %MERGING TECHNOLOGIES TOO ESPECIALLY FOR TELECOMARE GOING TO TOTALLY CHANGE MUTING JOBS !S -ATT SAID ) THE WAY WE THINK ABOUT DON T THINK CUBICLES WILL BE A DOING BUSINESS THING ANYMORE BY THEN BUT "Y THE TIME ROLLS RATHER OPEN WORK ENVIRONAROUND ) HOPE TO SEE AN MENTS WITH SPACE AVAILABLE ALMOST COMPLETE ELIMINAFOR RENT TION OF UNNECESSARY PAPER 4HESE POSSIBILITIES WILL PRODUCTS IN THE WORKPLACE ELIMINATE THE NEED n IN MOST THROUGH THE DIGITIZATION OF LINES OF WORK n FOR HAVING TO INFORMATION AND CLOUD STOR- RELOCATE FOR A JOB AND WILL AGE OPPORTUNITIES BROADEN THE AMOUNT OF JOBS )N YEARS TOO ) EXPECT AVAILABLE TO PEOPLE IN PLACES FREE HIGH SPEED WIRELESS WHERE THEY MIGHT NOT CUR)NTERNET TO BE MADE AVAILRENTLY EXIST LIKE HERE IN THE ABLE TO EVERYONE BE IT 3AUK 6ALLEY

Tuesday, March 25, 2014

www.saukvalley.com

3AUK 6ALLEY -EDIA s #

VISION 2030 | THE WORKPLACE

Manufacturing not dead; in fact, future is bright

BY JOHN M. GVOZDJAK President &RANTZ -ANUFACTURING #OMPANY

M

anufacturing is still strong in the Sauk Valley, and I am optimistic about its future.

The NIU Center for Governmental Studies recently conducted a study of our five-county region, and it revealed that manufacturing comprises 21 percent of our regional economy â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s 12 percent statewide and 11 percent nationwide.

Many are surprised by this fact, especially given the general feeling in our region that manufacturing is in decline due to the exit of some major firms over the past decade.

The truth is that manufacturing is rebounding in the United States.

Smart manufacturers are

finding ways to compete globally with lower-cost countries. Consider: s 5 3 MANUFACTURers and workers are the most productive in the world, according to research conducted by the National Association of Manufacturers. s 5 3 MANUFACTURERS are innovative, driving two-thirds of all private sector spending on research and development, according to the National Science Foundation.

Smart manufacturers are focused on two areas to expand their market share both domestically and abroad.

1. New technologies Money spent on new technologies contributes to growth in two ways: product innovation and process improvements.

Rather than copying

existing products in the marketplace, U.S. manufacturers are investing John M. research and Gvozdjak development dollars to rethink products and add features that customers value. The recent announcement of the establishment of a multi-million-dollar digital manufacturing laboratory in Chicago is an example of the ongoing commitment for the U.S. to retain a premier status as the worldâ&#x20AC;&#x2122;s manufacturing powerhouse. Further, private investment in process improvement technologies, robotics, and quality assurance enable U.S. workers to produce more quality products per

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person than their foreign counterparts overseas.

Maintaining our strong lead in productivity is vital to our position in the world.

2. Skills Development Manufacturing trade journals are filled weekly with stories about the â&#x20AC;&#x153;skills gap.â&#x20AC;? While it is true that many basic manual assembly jobs have gone overseas, manufacturers today are searching for higher skilled workers to operate million-dollar assembly machines.

When these advanced machines break, skilled technicians are needed to repair them. When they need to be modified, skilled technicians are needed to program their computerized controllers.

Manufacturers know that we must invest in

training our existing workforces to support the investments in higher technology machinery. But more needs to be done to fill the â&#x20AC;&#x153;pipelineâ&#x20AC;? with bright young men and women seeking financially rewarding careers in todayâ&#x20AC;&#x2122;s new manufacturing centers. American industry needs tradesmen and technicians with more advanced skills than once were required.

While a college education can be the right choice for some, for other students, technical training for a vocational career is a great choice.

Right here in our midst we have the Whiteside Area Career Center, where interested students learn about various careers, including manufacturing. In addi-

tion to the classroom, students participate in â&#x20AC;&#x153;hands onâ&#x20AC;? internships at area businesses and can then move on to certification programs at Sauk Valley Community College. Manufacturers value these programs and successful students have ready access to a rewarding future career.

Yes, technology has changed the manufacturing of today. And there have been some casualties in our area as major manufacturers have departed over the years. Yet we still have many great manufacturing opportunities for our students right here in the Sauk Valley.

That is why I think the future is bright for our businesses, and for our young people in this community.

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VISION 2030 | AGRICULTURE

Sifting through the mass of technology Knowing what to use, and not to use, will be key for farmers

BY MATT MENCARINI MMENCARINI SAUKVALLEY COM

EXT

Technological advances in agriculture will come in many areas â&#x20AC;&#x201C; equipment, marketing and biology, among others â&#x20AC;&#x201C; but farmers will have to determine which new technologies will work for their operation and adapt accordingly.

Andy Pratt, who farms between Dixon and Amboy, said farmers already are used to finding ways to use new technology on their land. â&#x20AC;&#x153;Technology is going to be a huge part in agriculture,â&#x20AC;? Pratt said. â&#x20AC;&#x153;It already has been. It will continue to increase.â&#x20AC;?

The newest technology Pratt has implemented is variable rate planting, which determines how much seed is planted throughout a field.

The amount of seed planted in one area or another depends on the production of that area.

Variable rate planting uses the seeds more efficiently.

Steve Ackeberg is a precision farming specialist with Birkeyâ&#x20AC;&#x2122;s, a farm equipment store. He said about 20 percent of farmers in the area use variable rate planting, but itâ&#x20AC;&#x2122;s a growing percentage.

As an emerging technology, variable rate planting gives farmers new tools, but itâ&#x20AC;&#x2122;s important to know what tools to put to use and what tools not to use. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just part of the business that you have to [deal with],â&#x20AC;? Pratt said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s like any business.â&#x20AC;?

Transgenic crops As with any business, there are supply and demand issues in farming, said Stephen Long, a crop sciences professor at the University of Illinois at Urbana-Champaign. â&#x20AC;&#x153;If you look at growing global demands for our major commodity crops â&#x20AC;&#x201C; soybeans, maize rice, and wheat,â&#x20AC;? Long said, â&#x20AC;&#x153;if you look at the rate that weâ&#x20AC;&#x2122;re improving yield, itâ&#x20AC;&#x2122;s not really keeping pace with global demand.â&#x20AC;?

The price of crops will continue to rise, Long said, and new technology will have to develop as a way to increase yield to meet demand. â&#x20AC;&#x153;The growth area is in transgenic crops,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve seen a big opportunity in that area.

Because of the regulation and laws, itâ&#x20AC;&#x2122;s slow and expensive.â&#x20AC;?

Transgenic crops â&#x20AC;&#x201C; also known as genetically modified crops â&#x20AC;&#x201C; have more genes that have been artificially inserted instead of being pollinated. Those added genes can come from an different species or unrelated plant.

A lot of debate and some controversy have surrounded the safety of transgenic crops. Theyâ&#x20AC;&#x2122;ve been used in the Midwest for nearly 15 years without significant problems, Long said, so itâ&#x20AC;&#x2122;s a route that might have to be traveled to increase production. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t have a huge amount of extra land to put those crops on,â&#x20AC;?

Long said.

Farmland in the southwest of the country isnâ&#x20AC;&#x2122;t being used as much as in other parts of the country, Long said, so thereâ&#x20AC;&#x2122;s an opportunity for crops to be grown there, which can then be used for bio energy. â&#x20AC;&#x153;In the areas where you can grow sugar, you

SVM file photo

A view of the Witmer Precision Systems shop in Mount Morris. Global positioning devices are used to help farmers plant in precise locations of their field and record data. â&#x20AC;&#x153;The equipment is designed for farmers to control their planting before crops come up,â&#x20AC;? said Witmerâ&#x20AC;&#x2122;s Kelly Stevens. â&#x20AC;&#x153;They wouldnâ&#x20AC;&#x2122;t know theyâ&#x20AC;&#x2122;ve skipped every 10th seed until the crop comes up, and then itâ&#x20AC;&#x2122;s too late.â&#x20AC;? crops from the field to throughs. Email and text can get very high yields percent more oil per acre the market â&#x20AC;&#x201C; technolmessages added new of biomass,â&#x20AC;? Long said. than a soybean field,â&#x20AC;? ogy, he said, will likely ways to communicate â&#x20AC;&#x153;You could get a lot of Long said in the press bring the buyer and seller with farmers, Stoller said, biodiesel from that. And I release. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s enough closer together. adding that heâ&#x20AC;&#x2122;s bought see that increasing.â&#x20AC;? oil to make it worth harBut the nature of the bushels of corn via text Long and a team of vesting.â&#x20AC;? business â&#x20AC;&#x201C; sellers want message. researchers introduced Thereâ&#x20AC;&#x2122;s still an inforgenes that boosted natural From handshakes higher prices, and buyers want lower prices mality to the business. oil production in sugarto FaceTime â&#x20AC;&#x201C; means that there is still â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s still a handshake cane, according to a Unithe room for the local business,â&#x20AC;? Stoller said. versity of Illinois release, Scott Stoller is a grain Stoller said he wouldnâ&#x20AC;&#x2122;t increasing oil production merchandiser for Ag Per- grain elevator, Stoller said, to buy corn and be surprised if buyers in stems to 1.5 percent. spective, a Dixon-based and sellers in 2030 were â&#x20AC;&#x153;That doesnâ&#x20AC;&#x2122;t sound like agriculture risk and asset soybeans and then sell it themselves. making deals using Facea lot, but at 1.5 percent, a management firm.

Technological advances Time â&#x20AC;&#x201C; Appleâ&#x20AC;&#x2122;s video sugarcane field in Florida From a marketing arenâ&#x20AC;&#x2122;t always big breakchatting software â&#x20AC;&#x201C; so would produce about 50 standpoint â&#x20AC;&#x201C; taking the

they can look each other in the eye.

From his office in Dixon, Stoller can communicate with a farmer in Indiana about the corn and soybean market in the Ukraine, given recent developments in that country.

Was that information particularly important to that farmer? Probably not, Stoller said, but it illustrates the amount of information available to farmers.

There is, however, such a thing as too much information. Stoller calls it â&#x20AC;&#x153;noise,â&#x20AC;? and said about 5 years ago farmers faced a market saturation of information.

Farmers who can adapt and tune out the information that isnâ&#x20AC;&#x2122;t important will likely be successful in the future, Stoller said.

Itâ&#x20AC;&#x2122;s about knowing what technology to adopt, he said, and what to pass up.

In the next 16 years, technological developments in seeds, tractors and marketing opportunities are expected. Pratt said he wasnâ&#x20AC;&#x2122;t sure which area of farming technology is most valuable. Farmers, he said, will adapt. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t know what would be the most efficient, if you look at it all combined â&#x20AC;&#x201C; technology, chemistry, data technology,â&#x20AC;? Pratt said. â&#x20AC;&#x153;Most farmers, probably, once they have it, they wonâ&#x20AC;&#x2122;t want to give it up.â&#x20AC;?

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VISION 2030 | AGRICULTURE

Technology driving savings in field Tractor, sprayer technology leads to efficiency, lower costs

WHAT DO WE THINK? What do members of the SVM newsroom think will be the biggest challenge or opportunity for local farmers between now and 2030?

BY MATT MENCARINI MMENCARINI SAUKVALLEY COM

EXT

PROPHETSTOWN â&#x20AC;&#x201C; The cab of the newest model Case International Harvester sprayer looks more like the cockpit of a fighter jet than the 1954 tractor that sits 20 feet away.

The sprayer was on display for an open house in early March at the Birkeyâ&#x20AC;&#x2122;s location in Prophetstown.

Also at the open house was the newest model Case IH tractor, 60 years newer than the 1954 model near the door.

In the past 60 years, technology has not only increased the horsepower between those two machines from 30 to 350, but itâ&#x20AC;&#x2122;s integrated GPS tracking and wheel treads â&#x20AC;&#x201C; almost like a tank â&#x20AC;&#x201C; all in the name of efficiency.

Steve Ackeberg, a precision farming specialist with Birkeyâ&#x20AC;&#x2122;s, said not only is technology rapidly changing in tractors and farm equipment, the interest in those technological advancements is increasing. â&#x20AC;&#x153;The percentage of farmers that want the new technology grows every year,â&#x20AC;? he said. â&#x20AC;&#x153;It used to be the big producers were the ones that got into the technology; now itâ&#x20AC;&#x2122;s everywhere.â&#x20AC;?

Ackeberg estimated that 70 percent of farmers in this area want to know what the new technology is and how they can use it to be more efficient and save money.

Precision farming uses GPS to map out farm boundaries and soil conditions.

Photos by Alex T. Paschal/apaschal@saukvalley.com

Steve Ackeberg, a precision farming specialist with Birkeyâ&#x20AC;&#x2122;s in Prophetstown, speaks about high-tech computer and tractor systems. â&#x20AC;&#x153;It used to be the big producers were the ones that got into the technology; now itâ&#x20AC;&#x2122;s everywhere,â&#x20AC;?

Ackeberg said.

Some of that technology is in the monitorsâ&#x20AC;&#x2122; auto steering and in GPS tracking to keep the tractor or sprayer right where it should be. The accuracy starts at 6 to 8 inches, Ackeberg said, but can be even more precise.

That most precise auto steering system â&#x20AC;&#x201C; accurate to less than an inch â&#x20AC;&#x201C; comes from tractors and farms equipped with a Real Time Kinematic signal. Farmers with RTK signals use satellite GPS and a base station on the farm to relay signals and corrections to the tractorâ&#x20AC;&#x2122;s monitor. â&#x20AC;&#x153;When you drive by a field in the late spring, early summer, and you see the corn come up, and you canâ&#x20AC;&#x2122;t tell there the planter was, thatâ&#x20AC;&#x2122;s why,â&#x20AC;? Ackeberg said. â&#x20AC;&#x153;Because they have RTK or theyâ&#x20AC;&#x2122;re running a really good signal.â&#x20AC;?

That accuracy means the planters or sprayers are driving straighter lines, Ackeberg said, and

as a result they use less fuel and less seed. As the cost of fuel, seed and treatment increase, the benefit of planting and spraying more efficiently also increases.

Steering systems will take the tractors up and down the rows, but companies havenâ&#x20AC;&#x2122;t released software or steering systems that will turn a tractor around at the end of a row, Ackeberg said, adding that he heard the delay wasnâ&#x20AC;&#x2122;t in the technology, but from legal departments holding up the release.

He hopes that the technology to turn tractors will be released soon, and is optimistic that the capability of driverless tractors could be released within 5 years. â&#x20AC;&#x153;How fast itâ&#x20AC;&#x2122;s rising â&#x20AC;&#x201C; with technology â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s probably not far out for a guy controlling his equipment from his office,â&#x20AC;? Ackeberg said, adding that the technology is available, but not at the market level yet.

The time of your life is here!

The technology to farm from an office, to some extent, is already available.

Telematics systems allow a grower to sit in his office and monitor what the tractors, combines and sprayers in the field are doing. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s looking at fuel consumption [and] how fast itâ&#x20AC;&#x2122;s going through the field,â&#x20AC;? Ackeberg said, adding that itâ&#x20AC;&#x2122;s just another way farmers can collect information about their equipment and operation.

Technology has even made its way to the sprayerâ&#x20AC;&#x2122;s booms, which spread the treatment chemicals to the crops.

The newest model sprayer will adjust the boom height while it drives through a ditch, among other adjustments it makes without prompting from the driver. â&#x20AC;&#x153;It has the auto height,â&#x20AC;? Ackeberg said. â&#x20AC;&#x153;It has auto shutoff, so when youâ&#x20AC;&#x2122;re coming to the end [of a row], these

booms [with sprayers] will automatically shut off ... so youâ&#x20AC;&#x2122;re not wasting any chemical. And thatâ&#x20AC;&#x2122;s really grown in the past couple years.â&#x20AC;?

As technology develops, it becomes more inexpensive and accessible â&#x20AC;&#x201C; and thatâ&#x20AC;&#x2122;s not technology only in the agriculture industry.

And because a bag of seed for corn can cost about $350, Ackeberg said, farmers will explore more technological solutions to help them from spreading too much seed.

About 20 percent of farmers are using a technology called variable rate, which automatically spreads more or less seed in different parts of the field during planting, Ackeberg said. â&#x20AC;&#x153;You take your good production ground, and thatâ&#x20AC;&#x2122;s where you want to put more seed,â&#x20AC;? he said. â&#x20AC;&#x153;You have your lower production ground, and you put less there.â&#x20AC;?

The farmer uses GPS tracking and a harvest map to determine how much seed to plant before even getting to the field. The computer and the software do the rest.

David Giuliani, news editor: )F THE PAST IS ANY INDICA TOR FARMING WILL CONTINUE TO BENEFIT FROM ADVANCES IN TECHNOLOGY 4HIS INDUSTRY

PERHAPS MORE THAN MOST

HAS A KNACK FOR INCREASING EFFICIENCY $ECADES AGO PEOPLE WORRIED THERE WOULDN T BE ENOUGH FOOD TO HANDLE BIG INCREASES IN POPULATION 9ET CROP YIELDS SKYROCK ETED HELPING DEAL WITH GROWING DEMAND 4O REMAIN COMPETITIVE

FARMERS MUST STAY ON TOP OF TECHNOLOGY 4HEY ARE Jim Dunn, opinion page editor: &ARMS IN THE 3AUK 6ALLEY ONCE WERE VERY DIVERSE PLACES WITH A VARIETY OF CROPS CORN SOY BEANS WHEAT OATS ALFALFA AND LIVESTOCK CATTLE DAIRY COWS HOGS SHEEP CHICK ENS ,ONG BEFORE

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VISION 2030 | AGRICULTURE

Bright future for Sauk Valley ag industry

BY SCOTT STOLLER Grain merchandiser Ag Perspective, Dixon

T

he year was 1998.

Gasoline prices hovered just over a $1 a gallon, and that was disgustingly high. John Deereâ&#x20AC;&#x2122;s 9650 combine series was rolling off the line, and cellphones were more often than not found in a bag. The mass exodus of livestock, especially hogs, left rural Illinois dotted with empty barns and decaying buildings.

According to multiple census sources, the average age of farmers in our great nation hovered around 55. Wait a minute, this is a column about 2030! Who cares about 1998? Thatâ&#x20AC;&#x2122;s from 16 years ago! Well, you donâ&#x20AC;&#x2122;t know where youâ&#x20AC;&#x2122;re going, if you

donâ&#x20AC;&#x2122;t know where youâ&#x20AC;&#x2122;ve been. â&#x20AC;Ś Looking forward, it is safe to say that sometime between now and 2030, we will see a recession of the ag economy.

I happen to be a glasshalf-full type of guy, so letâ&#x20AC;&#x2122;s not focus on the negative of the potential hardship we may face.

Conversely, as a younger member of the agriculture population, there will be a tremendous amount of retirements, farm ground changing hands, and leadership opportunities as we move toward the year 2030.

With todayâ&#x20AC;&#x2122;s average farmer 58 years of age, there will be an awesome opportunity for ag businesses and farmers alike to grow their operations.

According to the USDA,

over the next 20 years, 70 percent of U.S. farm ground will change hands.

Scott Transition Stoller planning from the baby-boomer generation to their children or grandchildren will be one of the largest obstacles that most farms and private agribusiness must endure to have longevity.

Some will make it; some will not. As operations change and adapt, so will the need for skilled labor and the tools to train the next generation how to run the farm or agribusiness.

Careers in agriculture have a tendency to be cyclical in nature, much like cattle and hog mar-

kets were in the â&#x20AC;&#x2122;70s and â&#x20AC;&#x2122;80s. In the late 1990s, the overall U.S. economy was stable and plugging right along. A big concern for our rural communities was the â&#x20AC;&#x153;brain drain,â&#x20AC;? where good students in high school and college were leaving for better opportunities in larger cities. As I left high school, I was acutely aware that most of my friends were moving on to something different than a career on the farm.

Fast forward to today, and my, have the times changed. College graduates with a degree in agriculture are highly sought after. So much so, that some students are committing to their employer through scholarship programs at the end of their sophomore

year. Just as much as a grower wants to bring good, young talent back to the farm, the agribusiness population is looking to do the same.

As the potential for recession rises over the next 16 years, the competition for some sectors of employees will wane.

With consolidation, cutting-edge technology, and fewer overall farms and agribusinesses, the economy for the everyday worker will be marginal. Yet, the specialty careers in technology, agronomy, and marketing will still be in high demand.

As we plow through the next 16 years and reach 2030, agriculture in the Sauk Valley may appear the same to the casual observer. Tractors, combines, and sprayers will

continue to be norm as you drive by a farmstead.

From inside the industry, however, we know there will be many factors that try to limit the success of our localized economy.

Ability to source sufficient credit, rapidly changing rules and regulations, and worldwide competition all appear to be limiting factors on the surface.

As job security for us, the world adds more people each and every day. With our proximity to rail, ethanol, and river markets, our industry has the opportunity to be a supplier to the world for their needs. The future of agriculture in 2030 for the Sauk Valley â&#x20AC;Ś looks bright!

Scott Stoller is a grain merchandiser for Ag Perspective in Dixon.

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VISION 2030 | BANKING & FINANCE

$AYING GOODBYE TO YOUR BANK?

Technology brings opportunities, challenges for banks

T

BY PAM EGGEMEIER PEGGEMEIER SAUKVALLEY COM

EXT

echnology has the banking industry headed down a futuristic path, but the destination will vary depending on the bankâ&#x20AC;&#x2122;s size.

While small community banks make up about 95 percent of the industry in sheer numbers, they account for only about 7 percent of assets.

Online and mobile banking could eventually make it unnecessary to step foot into a bank building again, but those changes wonâ&#x20AC;&#x2122;t be coming at breakneck speed for most small banks. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re always looking at our technology options,â&#x20AC;? said Dean Ahlers, president and CEO at Sterling Federal Bank. â&#x20AC;&#x153;We want to offer what our customers want, but there is immense cost to new technology.â&#x20AC;?

Online banking has been changing the financial services landscape for many years, with some banks even instituting an online-only business model. The race is now on for banks to get their mobile banking infrastructure in place.

Sterling Federal hopes to have its mobile banking technology in place this year or in early 2015.

Looking into his crystal ball, Ahlers sees virtual tellers, ATMs that can offer more services, smaller branches, and

increased use of kiosks.

Smaller staffs will be crosstrained to assist in more service areas.

The brick-and-mortar presence should continue to decline, as has been the Dean trend in the retail sector.

Ahlers Regulators have a say in the closing of branches, however, to make sure certain areas, especially rural, are not underserved. â&#x20AC;&#x153;It wouldnâ&#x20AC;&#x2122;t surprise me if at some point many people never set foot in a bank again,â&#x20AC;? Ahlers said. â&#x20AC;&#x153;I think weâ&#x20AC;&#x2122;ll see a lot less new construction, and the larger banks will have fewer branches.â&#x20AC;?

Ahlers said his bank has explored the use of social media, but for now, the costs outweigh its benefits.

The cost of implementing new technology is just the beginning â&#x20AC;&#x201C; taking the security measures needed to make it safe for consumers is a never-ending battle.

Ahlers considers security fears the biggest challenge that banks face going forward. While cybercriminals tend to go after the big banks, community bankers fear the trend could change. â&#x20AC;&#x153;As criminals run into more problems hacking larger banks, itâ&#x20AC;&#x2122;s likely theyâ&#x20AC;&#x2122;ll move to ours,â&#x20AC;? Ahlers said. â&#x20AC;&#x153;Small banks donâ&#x20AC;&#x2122;t have the resources larger banks have, and itâ&#x20AC;&#x2122;s hard to stay ahead of the curve,â&#x20AC;? Ahlers said. â&#x20AC;&#x153;You have to take the time to study risk and reward.â&#x20AC;?

While larger banks can build their own technology infrastructure, most of the smaller banks donâ&#x20AC;&#x2122;t have people on staff for projects of that size.

Nate Kloster, chief financial officer and chief operating officer at Sauk Val-

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At Fifth Third Bank, a much larger regional bank with $123 billion in assets, technology can come at a much faster pace. The pace has been driven in part by the demand for mobile and online banking services from Fifth Thirdâ&#x20AC;&#x2122;s customers, company spokesman Andrew Hayes said. â&#x20AC;&#x153;The adoption rate exceeded what we anticipated,â&#x20AC;? Hayes said. â&#x20AC;&#x153;We expected 11 percent over what we did last year, and we had a 20 percent rate.â&#x20AC;?

Bigger banks have more of a race mentality for the latest technology edge. â&#x20AC;&#x153;This is a necessary cost for us,â&#x20AC;? Hayes said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve planned for this for a while so we can meet demand.â&#x20AC;?

Jon Byar, a commercial banker at Midland States bank, agrees that customers must get what they want. â&#x20AC;&#x153;When I first started, they had to come in for everything,â&#x20AC;? Byar said. â&#x20AC;&#x153;People are busier now, and the speed of getting things done is important.â&#x20AC;?

Sometimes the technology saves customers money. â&#x20AC;&#x153;With postage going up, our billpaying services help, and debit cards save people on check costs,â&#x20AC;? Byar said.

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VISION 2030 | BANKING & FINANCE

Community banking about personal service Technology won’t change core mission of local bankers

BY NATE KLOSTER #HIEF FINANCIAL OFFICER CHIEF OPERATING OFFICER 3AUK 6ALLEY "ANK

“For all the ways technology has improved your life, please press three.” – Alice Kahn “I just want to talk to a real live person. None of the numbered phone prompts fit my situation.” Most people have this frustrating thought at some point. Twenty-year-old college students may have 3,200 texts a month. Is that personal interaction?

“At Sauk Valley Bank, we build our Relationships around Accountability to our customers by Delighting them with the Attention and Respect they deserve,” reads the Sauk Valley Bank mission statement. RADAR, the acronym for the mission statement, demonstrates that Sauk Valley Bank is all about relationships and customer service. This represents community bank-

ing at its core. We desire to provide this type of service to a generation that is getting more accustomed to communicating and transacting using electronic devices.

Nate In the 1970s and 1980s, Kloster the introduction and expansion of the ATM network was expected to mean fewer tellers. In the 1990s and 2000s, checks could be digitally imaged so banks could begin sending e-statements because they no longer had to return original checks with statements. The increased speed of the Internet catapulted financial institutions into the electronic age of banking.

How has the continued rise in the use of and demand for technology impacted community banking? Technology is more impersonal, whereas community banking prides itself on offering superior customer service. Will community banking, as we know it, be forced to depart from this strategic differentiation that sets them apart from the national chains?

In this technology-driven society, community banking must still offer

superior customer service while marketing to a digitally driven generation.

Mobile banking, for example, is more than accessing and viewing account balances. It can now pay bills, make deposits by taking a picture of a check, and pay people directly from a phone instead of writing a check. Sauk Valley Bank will launch a mobile app in April.

Even with the fast-paced technology age, there continues to be a market for personal interaction. Community banking delivers needed personal attention to small business owners, the farming community, and municipalities. Personal attention will keep community banking an active participant in our communities well into the future.

Richard Buckminister Fuller said: “I just invent. Then I wait until man comes around to needing what I’ve invented.” Customers will decide whether they need the modern technology banking has to offer. As we look to the future of technology in community banking, customers will be completing ATM transactions by holding their phone up to the ATM. ATMs have begun to accept deposits by taking an image of a check and verifying its authenticity. Transac-

tions at the teller window are increasingly dependent on technology; checks are scanned and immediately converted to an image. At some financial institutions, tellers do not manually count currency; machines accept and dispense cash.

One of the challenges the financial industry faces in the technology age is information security and fraud. The United States is expected to be ready for chip technology in 2015. A small computer chip imbedded in the debit/ credit card will significantly reduce fraud because these cards will no longer be able to be duplicated. Community banks will invest in sophisticated fraud detection systems to keep customers safe and maintain customer confidence.

Community banks are leaders in customer service, which is what sets them apart from the national chains. How community banks deliver customer service might change, but community banks will continue to be the best at delivering the personal service for which they are known. When you call a community bank, a friendly voice at the other end will not be replaced with a teleprompt.

Microchip cards seen as big step in banking safety BANK

CONTINUED FROM C16

“There also is the ‘going green’ element by eliminating much of the paper we were generating.”

The flip side, however, is that the big banks stand to save more money as the number of buildings continues to decrease.

Midland States has had mobile banking for about 3 years and has a Facebook page.

Hayes agrees that the effects of technology on the banking experience change the role of office staff.

“We take what we call a One-Bank Approach,” Hayes said. “In branches,

the experience is more about consulting and less about transactions.”

In line with the personnel transformation, the bank atmosphere also will continue to change.

“We are seeing more of a boutique look,” Hayes said. “Lots of lounge furniture that brings a comfort element to the consultative role.”

Security is a huge priority for banks of any size, Kloster said. The supposed panacea for credit and debit card fraud is microchip cards to replace the magnetic stripe versions Americans are used to. The microchip cards also will eventually be enhanced with PINs. The U.S. is far behind

the world curve on microchip card technology. More than 80 countries use it, but less than 1 percent of cards issued in the U.S. have chips.

The sheer size of the U.S. and its retail and banking sectors have made the change costly, making it tempting for companies to delay the transition. The cards must be inserted into payment terminals that read the identifying information on the chip.

In the aftermath of high-profile security breaches at Target, Neiman Marcus and several big hotel chains, a sense of urgency is building to implement the infrastructure.

“The chip technology

with debit cards can’t come soon enough,” Kloster said. “From what I understand, much of the chip technology should be in place by the end of 2015.”

With mobile technology, if a phone is lost, none of the transaction information is left on the device. Malware, insecure Wi-Fi, and use of third-party apps, however, pose security threats to smartphones.

Cybersecurity is an exercise in gamesmanship – a continual race to stay ahead of the criminal element.

“You constantly do risk assessment, look at all aspects and cover your bases,” Kloster said.

While it’s easy to get

caught up in the latest trends, unless the customer tells you they want it, it doesn’t become a high priority, Ahlers says.

It might seem that the push for high-tech banking would take smaller banks away from their marketing sweet spot – customer service.

“That’s certainly on our minds with all the technology,” Kloster said.

“We pride ourselves on customer service, and for those who want it, it’s not going away. Those who want the technology, they can get that too.”

Although some bankers say this generation doesn’t have the same level of appreciation as their parents and grandparents, they also believe

a demand will always exist for the personal touch that community banks have always marketed.

“I don’t think this area will totally gravitate away from that,” Ahlers said.

“People still are going to want branches and people to talk to.”

The key is knowing your customer demographic and doing what customers want instead of trying to drive them in a particular direction, Ahlers says.

Another trend expected to continue, at least in the short term, is the flight from mortgages.

Regulations can be costly on that side of the business, and profits are minimized by low interest rates.

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VISION 2030 | BANKING & FINANCE/AGRICULTURE

â&#x20AC;&#x2DC;Too big to failâ&#x20AC;&#x2122; laws hurting smaller banks Regulatory pressures and costs could drive more consolidation

BY PAM EGGEMEIER PEGGEMEIER SAUKVALLEY COM

EXT

Banks will continue to be pressured by increased regulations and the costs of rapidly changing technology within the industry, bankers say.

While all banks are challenged by increased oversight instituted by the federal Dodd-Frank act, community banks that were not the prime targets of the law have far fewer resources to deal with the mounds of extra paperwork and changes in the way they must do business.

Those pressures have forced many community banks out of business since the Dodd-Frank Wall Street Reform and Consumer Protection Act became law in July 2010.

The extra costs from a strengthened regulatory environment and new technology platforms are expected to drive even more mergers and acquisitions going forward.

The federal legislation was passed in the wake of the global financial meltdown that triggered a recession from which Americans still are recovering. The law placed bank regulation in the hands of the government in an effort to increase

transparency and better protect consumers.

In addition to DoddFrank, Basel III, an extension of an international banking accord, looms in 2018 to increase oversight on capital requirements.

Advocates for community banks have called for adjustments to the regulations that better reflect the way smaller banks do business. â&#x20AC;&#x153;Fighting for regulatory relief is our top priority,â&#x20AC;? said David Schroeder, a legislative specialist for the Community Bankers Association of Illinois. â&#x20AC;&#x153;The solution is crafting new regulations to fit the relationship-based business model as opposed to the â&#x20AC;&#x2DC;too big to failâ&#x20AC;&#x2122; institutions.â&#x20AC;?

The CBAI is working on both the national and international regulatory fronts, Schroeder said.

Although community banks claim, percentagewise, a small portion of bank assets, they are responsible for nearly 50 percent of all smallbusiness loans. So-called â&#x20AC;&#x153;relationship bankingâ&#x20AC;? doesnâ&#x20AC;&#x2122;t lend itself to cookie-cutter analysis, Schroeder says. â&#x20AC;&#x153;These regulations hamper smaller banksâ&#x20AC;&#x2122; ability to do what they do best,â&#x20AC;? Schroeder said.

â&#x20AC;&#x2DC;â&#x20AC;&#x2DC;

Nate Kloster, chief financial officer and chief operating officer of Sauk Valley Bank

â&#x20AC;&#x153;They donâ&#x20AC;&#x2122;t have the resources to deal with all of this paperwork, and the consumers are impacted.â&#x20AC;?

Dean Ahlers, president and CEO at Sterling Federal Bank, agrees. â&#x20AC;&#x153;Regulatory pressures are a big challenge,â&#x20AC;?

Ahlers said, â&#x20AC;&#x153;and I expect that to continue.â&#x20AC;?

While Dodd-Frank was the result of â&#x20AC;&#x153;too big to failâ&#x20AC;? banks and their role in triggering the recession, bankers say it is contributing to the demise or consolidation of many small banks. â&#x20AC;&#x153;Community banks werenâ&#x20AC;&#x2122;t the problem,â&#x20AC;?

Ahlers said, â&#x20AC;&#x153;but DoddFrank hit us too.â&#x20AC;?

The large banks also are looking for more consolidation. Added regulatory costs are putting more distance between the haves and havenots. Those with cleaner balance sheets have a distinct advantage postrecession and are now in full acquisition mode. â&#x20AC;&#x153;Every industry is looking at how to come out of the economic downturn in a better position,â&#x20AC;? said Andrew Hayes, spokesperson at Fifth Third Bank. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re very committed to our market-

growth strategy, and are always looking at acquisition possibilities.â&#x20AC;?

Fifth Third considers banks of all sizes when it looks at possible targets, Hayes said. â&#x20AC;&#x153;We view community banks in a similar manner to bigger banks,â&#x20AC;?

Hayes said. â&#x20AC;&#x153;If the smaller banks have healthy deposits, we take a look at them.â&#x20AC;?

The difficult operating environment has stifled organic growth, bankers say, forcing many larger banks to look for growth elsewhere, which leads to mergers and acquisitions. â&#x20AC;&#x153;The regulations force banks to be very averse to risk,â&#x20AC;? Hayes said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a new way of operating.

You have to reallocate assets to meet the regulatory and technology demands. Those costs will drive M&A activity in the coming years.â&#x20AC;?

The Sauk Valley is served by a large number of banks, which could also contribute to more consolidation for the overwhelming majority that are small operations. â&#x20AC;&#x153;Northwest Illinois is a very highly saturated and competitive marketplace,â&#x20AC;? Ahlers said.

SHOULD BE LITTLE DEBATE THAT WEATHER EVENTS ARE BECOM ING MORE EXTREME /UR HEAT WAVES COLD SNAPS

DROUGHTS WINTER STORMS AND SUMMER STORMS ALL ARE BECOMING MORE VIOLENT AND PREVALENT !ND NOTHING IMPACTS FARMING MORE THAN WEATHER !S WEATHER PATTERNS What do members CONTINUE TO CHANGE SO

of the Sauk Valley TOO WILL AGRICULTURE &ARM ERS WILL NEED TO ADAPT THEIR Media newsroom PROCESSES TO THE REALITIES OF MORE EXTREME WEATHER

think will be the biggest challenge AND LIKELY WILL NEED TO RELY MORE ON TECHNOLOGY TO AID Philip Marruffo/pmarruffo@saukvalley.com or opportunity THAT EFFORT Don Temple drives his combine as he harvests his 4HOSE CHANGES WON T for local farmers corn crop on his farm in western Whiteside County.

COME CHEAP between now and Temple farms 500 acres of corn and 150 acres of soybeans.

2030?

Christopher Heimerman, news editor: BECOME A FORWARD THINK AND DAIRY SHIPPED RIGHT TO Jeff Rogers, manag!GAIN WITH ADAPTABILITY

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Pam Eggemeier, DURING THESE TIMES OF AN reporter: 4HE TREND OF ONLINE SHOPPING BOOM FEWER AND LARGER FARMS /NE PHONE CALL OR ONLINE IS LIKELY TO CONTINUE 4HE ORDER AND CONSUMERS CAN SMALLER GENERATIONAL OPER HAVE SPECIFIC COMBINA ATIONS HAVE ALREADY BEEN TIONS OF PRODUCE MEAT FORCED TO ADD NICHE PROD

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Midland States Bank still considers itself a community bank with a rural footprint, but the Effingham-based company has been in an acquisition frenzy. The bank has been around for more than 125 years, but since 2007, Midland States has bought nine financial services companies.

Parent Midland States Bancorp Holding Co. has assets of $1.7 billion.

Midlandâ&#x20AC;&#x2122;s acquisition of Heartland Bank, its latest and largest, will add an additional $794 million to the books when the August 2013 deal closes.

There are now 48 locations in four states, 31 in Illinois.

Given the added pressures, more small, familyowned banks could be open to selling. Nate Kloster, chief financial officer and chief operating officer of Sauk Valley Bank, says he expects to see that happen within a 60-mile radius of the area. â&#x20AC;&#x153;A lot of the smaller banks are owned by family or a small pool,â&#x20AC;?

Kloster said. â&#x20AC;&#x153;If they are aging and have no succession plan, I could see them deciding to just sell. With capital requirements going up, itâ&#x20AC;&#x2122;s get-

ting really tough on the banks in the $50 million to $70 million range.â&#x20AC;?

The technology costs are the second-largest cost concern, and community banks canâ&#x20AC;&#x2122;t afford to build their own platforms. Add to that the ongoing costs of security, and consolidation might look even more appealing to many smaller banks. Making the security costs more complex is the hesitation of retailers to get on board and invest in improvements.

The CBAI also plays an important role in helping with the technology changes that are key to the viability of smaller banks.

The organization provides technology-related services that include advocacy, education and vetting service providers.

The regulatory burdens, however, have taken many years to develop, and the variety of laws and regulations will be difficult to change quickly. â&#x20AC;&#x153;Regulators must consider the business model and risk level of community banks,â&#x20AC;? Schroeder said. â&#x20AC;&#x153;A one-size-fits-all approach just doesnâ&#x20AC;&#x2122;t work.â&#x20AC;?

UCTS TO BRING TO MARKET !GRICULTURE WILL CONTINUE ITS TRANSFORMATION INTO A VARIETY OF AGRIBUSINESS PURSUITS "YPRODUCTS WILL BECOME MORE VALUABLE AS RAW MATERIALS FOR ALTERNA TIVE ENERGY PRODUCERS %THANOL AND BIODIESEL FUELS ARE CONSIDERED TO BE BRIDGE TECHNOLOGIES SO THEIR SHELF LIFE COULD HAVE A HUGE IMPACT ON THE ECO NOMICS OF FARMING !DVANCES IN AG BIOTECH NOLOGY HAVE COME FAST AND FURIOUS IN AN ATTEMPT TO STAY ONE STEP AHEAD OF THE WEATHER AND PESTS )N THE EARLY S -ONSANTO FOREVER CHANGED THE FACE OF FARMING WITH THE FIRST GENET ICALLY MODIFIED PLANT CELL )F BIOTECHNOLOGY ISN T FUTUR ISTIC ENOUGH FOR YOU THEN HOW ABOUT BRINGING THE FIELDS TO THE CITY )T SHOULD BE INTERESTING TO SEE HOW FAR MOMENTUM CARRIES THE MOVEMENT FOR URBAN OR VERTICAL FARMING 7HILE IT SOUNDS INTERESTING IT S HARD FOR ME TO PICTURE STACKS OF TOMATOES AND ALFALFA PEP PERED ALONG THE CITY SKYLINES

3TATE !GRICULTURE 3OCIETY IN -ILWAUKEE 4HE ABILITY TO SWIFTLY ENGAGE CHANGE IS A POINT THAT NEEDS TO BE UNDERSCORED 4HE PROSPERITY OF THE 3AUK 6ALLEY DEPENDS ON IT /UR FARMERS WILL SEE INCREDIBLE OPPORTUNITIES IN THE FACE OF SEEM INGLY INSURMOUNTABLE CHAL LENGES !N AGING LABOR FORCE CHANGING WEATHER PATTERNS AND AN INCREASE IN POPULATION MAY LEAD TO PRESSURE ON FARMERS TO PRODUCE AND ENDURE MORE 4HROUGH THIS STORM OF CHANGE WE LL SEE OPENINGS FOR THE YOUNGER GENERATION TO STEP IN ! VARYING CLIMATE MAY MEAN A DIVERSIFICA TION IN CROP PRODUCTION n A DEMAND FOR MORE PRODUCE

BUT WITH IT A WARRANTY FOR EMPLOYMENT !GRICULTURE IS ONE OF )LLI NOIS LARGEST EMPLOYMENT SECTORS ACCORDING TO A -ARCH REPORT TO THE )LLINOIS 'ENERAL !SSEMBLY &ARMING IS AN ECONOMIC POWER PLANT AND IT WILL CONTINUE TO BE

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Matt Mencarini, reporter: ) M NOT SURE WHY BUT ) FIND THE INTER SECTION OF TECHNOLOGY AND AGRICULTURE FASCINATING !ND IN MANY AREAS OF LIFE

TECHNOLOGY WILL DRIVE WHERE WE ARE IN !GRICULTURE IS NO DIFFERENT 4HE FARMING POPULATION IS AGING AND BY WILL LOOK MUCH DIFFERENT THAN IT DOES NOW 7ILL THERE BE A SUD DEN INFLUX OF YOUNG FARMERS

RETURNING TO THEIR ROOTS AND LEAVING LIVES AND JOBS IN CITIES 7ILL MAJOR FARMING COMPANIES DOMINATE THE -IDWEST CONSOLIDATING WHO CONTROLS THE LAND ) M NOT SURE ) CAN ANSWER THESE QUESTIONS 4HERE ARE TOO MANY VARIABLES "UT WHAT ) THINK WILL HAPPEN

THANKS TO TECHNOLOGICAL ADVANCEMENTS IS THAT FARM ING LAND AND RAISING CATTLE WILL BECOME MUCH MORE EFFICIENT 3EED FUEL AND TREATMENT CHEMICALS WON T GO TO WASTE *UST AS FARM ERS GET EVERY BIT THAT THEY CAN FROM THE LAND THEY LL GET EVEN BETTER AT GETTING IT FROM THEIR EQUIPMENT Larry Lough, executive editor: (OW DO WE PROTECT OUR FUTURE 7ORK TO BALANCE SUSTAINABILITY AND PROFITABILITY IN AGRICULTURE 7E LL NEED BOTH TO MAINTAIN AN ACCEPTABLE QUALITY OF LIFE FOR FUTURE GENERATIONS n ON AND OFF THE FARM

4UESDAY -ARCH

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VISION 2030 | HOUSING

STILL NOT THE SAME Housing market in the Sauk Valley has yet to recover fully from crash

BY DAVID GIULIANI dgiuliani@saukvalley.com

EXT

Residential construction isnâ&#x20AC;&#x2122;t what it used to be, and mortgages are harder to obtain these days.

In 2007, the housing bubble burst. The market has yet to recover fully.

Single-family housing starts are an indication of the trend. Just look at Rock Falls.

In 2005, 2006 and 2007, the number of singlefamily housing starts in Rock Falls was eight, seven and four, respectively, according to city statistics. Since then, itâ&#x20AC;&#x2122;s been a couple a year at most, with 2010 a blip on the radar â&#x20AC;&#x201C; with four.

In 2013, Rock Falls had no single-family housing starts whatsoever.

It was not alone.

North across the Rock River, Sterling had two such starts in 2012. In 2004, a good year for housing, the city reported 10 starts.

In Dixon, the city had 11 single-family housing starts in 2013. â&#x20AC;&#x153;We had better years before 2008,â&#x20AC;? said Paul Shiaras, Dixonâ&#x20AC;&#x2122;s building inspector. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s kind of up and down in Dixon.â&#x20AC;?

Will the housing market return to what it was?

It likely will, local bankers say, but itâ&#x20AC;&#x2122;ll take awhile. â&#x20AC;&#x153;The mortgage market is very slow,â&#x20AC;? said Dean Ahlers, president and CEO of Sterling Federal Bank. â&#x20AC;&#x153;We had a refi-

Alex T. Paschal/apaschal@saukvalley.com

Since the housing bubble burst nationally in 2007, home sales and housing starts have lagged in the Sauk Valley. But Chris King, president of the Sauk Valley Association of Realtors, said agents are seeing more buyers than they have in a while. â&#x20AC;&#x153;People are over their fear of losing money if they go into a purchase,â&#x20AC;? King said. nancing boom in 2012.

Pretty much everyone who qualified for refinancing did take advantage of the lower rates.â&#x20AC;?

Whatâ&#x20AC;&#x2122;s next? â&#x20AC;&#x153;We need to see a better economic picture overall before people will get into the buying mode againâ&#x20AC;? Ahlers said. â&#x20AC;&#x153;If the economy picks up, people will feel more comfortable about their job opportunities, I donâ&#x20AC;&#x2122;t see that necessarily happening this year. â&#x20AC;&#x153;As far as 15 years from now, there are so many different factors that could affect that. Until the

economy kicks off again, I donâ&#x20AC;&#x2122;t see the mortgage market getting to more historical levels. People will have to feel good about the economy.â&#x20AC;?

The high number of home foreclosures took away some peopleâ&#x20AC;&#x2122;s enthusiasm to buy houses, he said. â&#x20AC;&#x153;They donâ&#x20AC;&#x2122;t feel comfortable moving forward with purchasing,â&#x20AC;? Ahlers said. â&#x20AC;&#x153;You may have more people who are renting. They donâ&#x20AC;&#x2122;t have excess savings.â&#x20AC;?

Sterling Federal Bank, he said, is way down on the number of mortgages

issued. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really slow,â&#x20AC;? Ahlers reported.

Banker: Regs impair industryâ&#x20AC;&#x2122;s ability Chris King, president of the Sauk Valley Association of Realtors, said agents are seeing more buyers than they have in a while. â&#x20AC;&#x153;I think interest rates are staying down,â&#x20AC;? said King, the broker and owner of United Country Sauk Valley Realty. â&#x20AC;&#x153;People are over their fear of

losing money if they go into a purchase.â&#x20AC;?

Dirk Meminger, president and CEO of Sauk Valley Bank, said the regulatory and legal response to the housing crisis has been â&#x20AC;&#x153;overwhelming.â&#x20AC;?

Before the crash, â&#x20AC;&#x153;if you had a borrower who didnâ&#x20AC;&#x2122;t fit in the box for one of the government programs, you could always determine and make that loan and hold it in portfolio,â&#x20AC;? Meminger said. â&#x20AC;&#x153;Current regulations are impairing the industryâ&#x20AC;&#x2122;s ability to do that,â&#x20AC;? he said. â&#x20AC;&#x153;They are creating other legal liabilities for our ability to do that. When we reach that point, the pendulum has swung too far. The regulation and law are depressing some normal economic lending activity. â&#x20AC;&#x153;If you are not literally underwriting to a federal program, I consider the environment still somewhere between depressing and hostile toward the lending sector,â&#x20AC;? the banker said. â&#x20AC;&#x153;The government will have to find a solution for Fannie [Mae] and Freddie [Mac].

I donâ&#x20AC;&#x2122;t know how theyâ&#x20AC;&#x2122;re going to deal with it.â&#x20AC;?

â&#x20AC;&#x2DC;There hasnâ&#x20AC;&#x2122;t been any simplificationâ&#x20AC;&#x2122; The federal Consumer Protection Financial Bureau, Meminger said,

Building home of the future, using a whole lot less energy

BY DAVID GIULIANI dgiuliani@saukvalley.com

EXT

STERLING â&#x20AC;&#x201C; What will the home of the future look like?

If Sterling businessman Ryan Derrer has his way, it will use a lot less energy. He has a business that he says is seeking to make that a reality.

Some may long for the days of relatively low energy prices, but they probably wonâ&#x20AC;&#x2122;t return â&#x20AC;&#x201C; at least anytime soon.

Hundreds of millions of people rising to the middle class in China and other countries are buying cars and appliances, placing more demands on gasoline and electricity.

Derrerâ&#x20AC;&#x2122;s company specializes in building energy-efficient homes using insulated concrete forms.

The homes are built with steel reinforcement concrete and a nontoxic retardant foam.

Such construction minimizes air leaks â&#x20AC;&#x201C; in other words, the heat stays in.

Derrer, who recently went to an industry conference in Las Vegas, learned that the Midwest is behind the rest of the country in using new technologies to make new homes energy-efficient.

The nationwide trend, he said, is that more building owners are seeking Leadership in Energy and Environmental

Design (LEED) certifications, which designates them as environmentally friendly. â&#x20AC;&#x153;Everything is going to be targeted and marketed toward that,â&#x20AC;? Derrer said. â&#x20AC;&#x153;Insulated concrete forms are what I do. It cuts energy costs by 50 percent right out of the gate. My problem is that everyone is caught in the status quo. As a society, we are missing the boat.â&#x20AC;?

With a solar component, Derrer said, a house could be considered â&#x20AC;&#x153;zero net energy,â&#x20AC;? which means a home is completely self-sufficient as an energy producer.

FUTURE

CONTINUED ON

C20

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was designed to simplify residential mortgage lending. Such a goal probably would be supported by anyone who goes through that process, he said.

But so far, he said, the agency has made no progress on that front. â&#x20AC;&#x153;There hasnâ&#x20AC;&#x2122;t been any simplification,â&#x20AC;? Meminger said. â&#x20AC;&#x153;It would be wonderful if there was.

This arm of the federal government has the primary purpose of simplification. I am truly hopeful that theyâ&#x20AC;&#x2122;ll be successful.

People are discouraged in some cases from seeking a mortgage because of the complications involved.â&#x20AC;?

Those complications, he said, make it far more costly for banks to stay in the residential mortgage lending business.

Sauk Valley Bank, by contrast, has decided to keep up with residential lending, keeping a consultant to help with the process, Meminger said. â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t afford mortgage lending to be a sideline,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re committing financial resources to stay in the residential mortgage game.â&#x20AC;?

As for new construction, Meminger said: â&#x20AC;&#x153;We continue to participate with some construction.

Itâ&#x20AC;&#x2122;s a fairly modest volume. We will expect that activity to continue near term. Weâ&#x20AC;&#x2122;re not looking for home construction to accelerate.â&#x20AC;?

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VISION 2030 | HOUSING

Homes being built by Derrer tornado-resistant FUTURE

CONTINUED FROM C19

Derrerâ&#x20AC;&#x2122;s company, The One Stop Building Shop, has three home construction projects scheduled for spring â&#x20AC;&#x201C; one each near Dixon, Mount Carroll and Forreston. The firm is online at www.onegreenbuilder. com. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been studying and working on this for the last 5 years,â&#x20AC;? he said. â&#x20AC;&#x153;I would like to make a documentary for the houses for the area.

With a TV show, you could show the process and what it can do to save energy. There are so many other benefits beyond energy efficiency.â&#x20AC;?

For instance, the homes are tornado-resistant. Derrer said he was in Washington, Ill., after the tornado there last year. The destruction, he said, would had been less if people had had homes built with

insulated concrete forms.

The One Stop Building Shop is a distributor whose focus is selling and promoting the concept of insulated concrete forms, according to the firmâ&#x20AC;&#x2122;s website. The homes are built under the company by subcontractors â&#x20AC;&#x153;looking to get an understanding of this product,â&#x20AC;? the site says. â&#x20AC;&#x153;We will invite everyone to watch,â&#x20AC;? the website says. â&#x20AC;&#x153;We will encourage participation, and we will surely expect there to be an interest throughout.â&#x20AC;?

One of Derrerâ&#x20AC;&#x2122;s next steps is to build a model home, so he can demonstrate what his type of construction can do for homeowners. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s tough for me to invite a lot of people to houses Iâ&#x20AC;&#x2122;m building,â&#x20AC;? he said. â&#x20AC;&#x153;I canâ&#x20AC;&#x2122;t have a mass of people coming in them. So I want to create a model home to show all this.â&#x20AC;?

SVM file photo

Ron Stonitsch (left) discusses the layout and features of his home as it was being built in July 2012

by Ryan Derrer (right) of The One Stop Building Shop in Sterling. Derrerâ&#x20AC;&#x2122;s company specializes in building energy-efficient homes with steel reinforcement concrete and a nontoxic fire retardant foam.

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VISION 2030 | TRANSPORTATION

Will the day come when personal vehicles not needed?

P

Photos by Philip Marruffo/pmarruffo@saukvalley.com

A Whiteside County Public Transportation bus makes a stop at Sauk Valley Community College while a Lee County Public Transportation bus picks up students.

Public transportation ridership, respect rising

BY JAMIE L. BLATTI %XECUTIVE $IRECTOR ,EE /GLE 4RANSPORTATION 3YSTEM

ublic transportation continues to evolve in the United States, specifically in Illinois and, most important, in the Sauk Valley.

In 2006, our former federal transportation bill SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) began to change the shape of transportation.

At a federal level, it required states to implement the 3 Câ&#x20AC;&#x2122;s: Coordination, Communication, and Collaboration.

Illinois was one of the most proactive states to implement public transportation where it did not exist and increase transportation access in the places it did.

In the next few years, residents will have access to transportation that covers every square inch of the state.

This means you can get from Dixon to St. Louis, Sterling to Chicago, Rochelle to Bloomington, without ever stepping foot in your car.

As we move forward with our current federal transportation bill, MAP-

21 (Moving Towards Progressâ&#x20AC;&#x201C;21st Century), the need to continue the coordinated efforts are heightened as intercity bus projects are more present than ever Jamie L. attempting to connect Blatti rural residents to access larger transportation systems for distance trips.

For example, in the Sauk Valley, Lee County has been working diligently with the Illinois Department of Transportation and Greyhound Bus Lines to implement a pilot project over the next several years.

This project will include building two 26-passenger Greyhound vehicles and completing two round trips daily from Chicago to Moline, with extended service into Davenport, Iowa.

The rural systems, such as Lee-Ogle Transportation System and Whiteside County Public Transit, will act as feeder service into the Greyhound stops along the Interstate 88 corridor.

BLATTI CONTINUED ON C22

Officals predict big future for little white buses

BY KATHLEEN SCHULTZ kschultz@saukvalley.com

EXT

It ainâ&#x20AC;&#x2122;t your grandmaâ&#x20AC;&#x2122;s little white bus any more.

Thatâ&#x20AC;&#x2122;s the message local public transportation officials are trying to park in the psyche of Sauk Valley residents. Their success with that mission will dictate to a large extent what system ridership will look like 15 years down the road.

Tori The Lee/ McDaniel Ogle Transportation System, or LOTS, and Whiteside County Public Transportation are among 11 regional systems statewide. Both are enjoying an increase in ridership, due in part to rising gasoline prices and a rocky economy, but also because of more public awareness of what used to be popularly referred to as â&#x20AC;&#x153;the senior buses.â&#x20AC;? â&#x20AC;&#x153;Over the past year, Whiteside County Public Transportation has worked hard to ensure our residents are aware of our public transportation,â&#x20AC;? said Tori McDaniel, its executive director. â&#x20AC;&#x153;We have had a 16 percent increase in ridership so far this year, which is phenomenal,â&#x20AC;? she said.

Looking further down the road, McDaniel said she expects annual ridership in her county to more than triple over the next decade-and-a-half, from about 39,000 a year in 2013, to more than 123,000 in 2030.

Jamie Blatti, executive director of the Lee-Ogle Transportation System and administrator of the North Central Area Transit in LaSalle County, is equally enthusiastic about her agenciesâ&#x20AC;&#x2122; futures.

Penny Lane Something for Everyone Everyone Antiques, Collectibles, Crafts & Old Memorabilia Lee/ Ogle County Transportation System driver Al Reece looks over his route information while on a stop at Sauk Valley Community College.

Projections for Lee-Ogle and Whiteside transportation systems Lee-Ogle Transportation System 2013 2030 !NNUAL RIDERSHIP

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3OURCES *AMIE "LATTI EXECUTIVE DIRECTOR OF THE ,EE /GLE 4RANS PORTATION 3YSTEM AND ADMINISTRATOR OF THE .ORTH #ENTRAL !REA 4RANSIT IN ,A3ALLE #OUNTY AND 4ORI -C$ANIEL EXECUTIVE DIRECTOR OF 7HITESIDE #OUNTY 0UBLIC 4RANSPORTATION

To catch a ride

Go to lccoa.com/transportation/ or ridewcpt.net/ FOR HOURS FEES AND MORE INFORMATION ON THE ,EE /GLE 4RASPORTATION 3YSTEM OR THE 7HITESIDE #OUNTY Transporation System.

"OTH AGENCIES ALSO HAVE &ACEBOOK PAGES Those little white buses â&#x20AC;&#x153;are more respected, and more treated like public transportationâ&#x20AC;? than ever before, she said.

LOTS ridership, which hit 120,000 last year, is projected to rise to 160,000 in 2030, she said.

Passengers also are becoming a more diverse lot.

In addition to people who have no access to personal vehicles â&#x20AC;&#x201C; about

6.7 percent of rural households, the state estimates â&#x20AC;&#x201C; riders include children of all ages who attend private schools, Sauk Valley Community College students, and folks on their way to job interviews, medical appointments, and outof-town shopping centers â&#x20AC;&#x201C; and, yes, seniors and the disabled.

PUBLIC CONTINUED ON C22

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VISION 2030 | TRANSPORTATION

Dixon, Rochelle airports in expansion mode Whiteside sees growth in marketing

BY KATHLEEN A. SCHULTZ KSCHULTZ SAUKVALLEY COM

EXT

If all goes as planned, by the time 2030 rolls around, Dixon Municipal Airport will have a longer runway and a bigger hangar to accommodate larger planes and, it is hoped, attract more business to the area.

The airportâ&#x20AC;&#x2122;s 5-year plan calls for tearing down one of the hangars and building a larger one, while its longer-range plan calls for building a new, 5,000-foot runway, airport board member Al Hill said.

The goals are in response, in part, to requests from those doing business in the area who would like to fly their corporate planes into Dixon, rather than land at Whiteside County Airport in Rock Falls, which already has such a runway, Hill said.

That same type of expansion also is going on in Ogle County, where the city of Rochelle broke ground in October on a $1.5 million project that will extend the Rochelle Municipal Airport runway to 5,000 feet.

Thatâ&#x20AC;&#x2122;s also due in large part to the eight or 10 Fortune 500 companies that, while not headquartered in Rochelle, do business in the city and need to be able to land their corporate jets, airport manager Mark Delhotal said.

Having a runway that size, which can accommodate small to mid-size planes, is attractive to businesses looking for new locations, Delhotal said. â&#x20AC;&#x153;The increased runway length will allow

A view of the hangars on Walgreen Field at Dixon Municipal Airport.

Photos by Philip Marruffo/pmarruffo@saukvalley.com

The Whteside County Airport in Rock Falls is â&#x20AC;&#x153;a tremendous asset to the county and to the entire area,â&#x20AC;? says Michael Dowell, president of M&M Aviation Services Ltd., which is contracted to run the airport. aircraft from across the country to fly directly into Rochelle instead of neighboring airports, which will allow more opportunities for businesses to be based in Rochelle,â&#x20AC;? Delhotal said at the groundbreaking.

Given the economic boom it is experiencing, the city is buying land and preparing for another airport expansion, which likely will be needed in the next few decades, he said.

While building a new hangar is quite doable within the next 5 years, Dixon is at the beginning of the process to build a new runway, which he hopes to see completed well before 2030 rolls around, Hill said.

How much money it will take, he was not sure.

A project study must be commissioned first, and officials already know that they will need to buy or trade land for the runway, and move a road out of the way.

Dixonâ&#x20AC;&#x2122;s share of those costs, though, should be only about 5 percent to 7 percent â&#x20AC;&#x201C; most of the rest

of the money will come from federal aviation fuel tax revenue and Illinois Department of Transportation funds, he said.

Whiteside County Airport officials donâ&#x20AC;&#x2122;t expect to see a big boom in traffic over the next decade and a half, or much of a need for expansion, officials for the Rock Falls facility said.

That, in part, is because nearby Rockford Chicago International Airport, which touts itself as Chicagoâ&#x20AC;&#x2122;s third airport, and Quad Cities International Airport handle the bulk of area cargo shipping. And unless the area becomes a bigger business center, or tourism becomes more of a draw, passenger traffic isnâ&#x20AC;&#x2122;t likely to pick up anytime soon, either.

There is, however, money to be made elsewhere.

Folks may be surprised to learn how versatile the Whiteside County Airport is, thanks to its longer-than-average runway for a facility of its size, according to Mike Dowell, manager of the county-owned facility in Rock Falls.

Public transportation boosts economy BLATTI

CONTINUED FROM C21

Although the final â&#x20AC;&#x153;stopâ&#x20AC;? list has not been formally approved, we can ensure that the Reagan Transit Center in Dixon will be a stop on the route, as well as a ticket agent for Greyhound Bus Lines.

As we continue to plan for transportation, several factors drive the industry, including funding levels, vehicle availability, and the economy.

Public transportation is subsidized by both the federal and state government, and we are unlucky in the fact that federal allocations have not increased in more than 20 years.

However, the Sauk Valley is fortunate in the fact that our Downstate Public

Transportation Act mandates an increase in state funding each year. As most nonprofits â&#x20AC;&#x201C; which transportation is â&#x20AC;&#x201C; can agree, the demand for services continues to rise while the funding stays stagnant.

The key point to understand about public transportation is that for every $1 invested, there is a $3 return.

Therefore, we all should support public transportation â&#x20AC;&#x201C; not only to have access to medical services, education, employment, recreation, for all residents regardless of age, ability, or disability, but also to boost our local economy.

The Sauk Valley transportation administrators are working diligently to increase federal, state, and local funding, vehicles, hours of operation, and, most important,

ridership and access to transportation.

We expect to see the community embracing and utilizing the service more so than ever before.

In 2030, we in public transportation hope that more residents from the Sauk Valley will embrace, understand, and support public service as we continue to coordinate, communicate, and collaborate transportation services for you.

We hope that someday, personal cars are not always needed and public transportation in the Sauk Valley can deliver transportation needs for you and your family.

We know that this may not happen by 2030, but we will continue to fight for increased funding and more vehicles to continue to handle the growing demand in service.

One local agency in the future?

PUBLIC

CONTINUED FROM C21

We have a couple of riders who are fairly upper middle class; they park their Escalades when gas hits $4 a gallon,â&#x20AC;? Blatti said, noting that her passengers range in age â&#x20AC;&#x153;from infants to 104.â&#x20AC;?

Also expected to change over the next decade is the administration and coordination of the various transportation agencies, which will further streamline services, increasing access and making longer trips even easier.

Local agencies already try to work together to meet ridersâ&#x20AC;&#x2122; needs â&#x20AC;&#x201C; Blatti cited one instance in which a rider who needed to get to Princeton got halfway there in a Lee

County bus, and the rest of the way in a Bureau County vehicle.

But state and federal mandates are calling for further improvements. â&#x20AC;&#x153;The coordination is going to become even more important than it has been, and we will see more and more counties grouped together,â&#x20AC;? Blatti said. â&#x20AC;&#x153;One thing that Iâ&#x20AC;&#x2122;m preparing for is to see Lee, Ogle, LaSalle, Whiteside, and Carroll combine into one transportation agency.â&#x20AC;?

Funding the system will continue to be a challenge, she said. Federal, state and local monies, along with rider fees, keep the fleets on the street.

The federal allotment, a component of the national gasoline tax, hasnâ&#x20AC;&#x2122;t risen in more than 20 years, which makes it

difficult to increase services, Blatti said.

State funds, which come largely from sales tax revenue, are required to go up 10 percent every year, though. â&#x20AC;&#x153;Generally speaking, because of the 10 percent increase in funding, we try to increase ridership by 10 percent every year; thatâ&#x20AC;&#x2122;s what the state likes to see,â&#x20AC;? she said.

Both she and McDaniel are encouraged by the changes that they have seen, though, and by those they anticipate. They hope to see more people take advantage of the system.

Within the next few years, Illinois residents â&#x20AC;&#x153;will have access to transportation that covers every square inch of the state ... without ever stepping foot in your car,â&#x20AC;? Blatti said.

â&#x20AC;&#x153;Anything that Midway can land, we can land,â&#x20AC;?

Dowell said. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the long and short of it.â&#x20AC;?

Although that makes the area more attractive to some businesses that might be thinking about locating in the area â&#x20AC;&#x201C; it was a plus when landing the Walmart Distribution Center â&#x20AC;&#x201C; the real growth potential might lie in getting more tenants and selling more fuel, Dowell said. â&#x20AC;&#x153;I know in the past that the airport has played prominently in some of the local companies being here, but that doesnâ&#x20AC;&#x2122;t really help with tenants and rentals,â&#x20AC;? he said.

Whiteside, Dowell said, is a good place to park a plane. It easily can accommodate â&#x20AC;&#x153;90 to 95 percent of all the business aircraft out thereâ&#x20AC;? in the region, and aggressive marketing in the suburbs could be the key to growing its revenue, he said.

The pitch? Move your aircraft to Whiteside County and your fuel costs will be cut in half.

Move your aircraft to Whiteside County and your hangar rental will go

down 60 percent. â&#x20AC;&#x153;I think we can do more, be a little bit more proactiveâ&#x20AC;? going after such business, Dowell said.

Airport board member Ed Maris agrees.

In the 25 years heâ&#x20AC;&#x2122;s been on the board, he said â&#x20AC;&#x153;there hasnâ&#x20AC;&#x2122;t been a big waiting listâ&#x20AC;? for hangar space.

There wonâ&#x20AC;&#x2122;t be much growth in air traffic unless growth comes elsewhere to the region â&#x20AC;&#x201C; a big company moves in that wants to ship products locally, for example.

Even if the Sauk Valley were to become a bigger tourism draw, other amenities â&#x20AC;&#x201C; such as hotels â&#x20AC;&#x201C; would have to accompany growth for the airport to benefit, Dowell said. â&#x20AC;&#x153;If it doesnâ&#x20AC;&#x2122;t happen downtown, itâ&#x20AC;&#x2122;s not necessarily going to happen here,â&#x20AC;? he said.

Along those lines, another way Rochelle found to increase its revenue: In 2012, the city brought the $2 million Chicagoland Skydiving Center to the airport.

Between the skydiving school and the on-site restaurant, the Flight Deck Bar & Grill, upward of 1,000 people spend their weekends at the airport in the summer months, Delhotal said.

Airports by the numbers "ELOW ARE THE NUMBER OF JOBS CREATED AND THE ECO NOMIC IMPACT OF A VARIETY OF AREA AIRPORTS ACCORD ING TO A STUDY RELEASED )N $ECEMBER BY THE )LLINOIS $EPARTMENT OF 4RANSPORTATION *OBS CREATED INCLUDES THOSE CREATED BY CAPITAL IMPROVEMENT PROJECTS AND VISITOR SPENDING Dixon Municipal Charles R. Walgreen Field 4OTAL EMPLOYMENT JOBS 4OTAL ECONOMIC OUTPUT

Erie Airpark Ultralight Flightpark 4OTAL EMPLOYMENT JOBS 4OTAL ECONOMIC OUTPUT

Ogle County Airport in Mount Morris 4OTAL EMPLOYMENT JOBS 4OTAL ECONOMIC OUTPUT

Rochelle Municipal Koritz Field 4OTAL EMPLOYMENT JOBS 4OTAL ECONOMIC OUTPUT

Whiteside County Joseph H. Bittorf Field in Rock Falls 4OTAL EMPLOYMENT JOBS 4OTAL ECONOMIC OUTPUT

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VISION 2030 | TRANSPORTATION & INFRASTRUCTURE

Sauk Valley rail traffic: Steady as she goes â&#x20AC;&#x2DC;Fortifiedâ&#x20AC;&#x2122; lines prepared to handle heavier traffic, UP says

BY KATHLEEN A. SCHULTZ kschultz@saukvalley.com

EXT

When it comes to rail traffic, no big changes are in the wind for the Union Pacific Railroad corridor through the Sauk Valley, said Mark Davis, UPâ&#x20AC;&#x2122;s director of corporate relations and media.

The company recently finished a big study of what it needs and where. â&#x20AC;&#x153;We began looking 3 years ago at what corridors were going to handle what commodities,â&#x20AC;? Davis said. â&#x20AC;&#x153;We historically have always looked ahead, to determine if our infrastructure is meeting our growth, and in what corridors.â&#x20AC;?

The railroad, which operates in 23 states in basically the western two-thirds of the country, plans to spend about $3.9 billion on capital projects this year alone, up about $300 million from last year, Davis said.

Most of that money, though, is going elsewhere â&#x20AC;&#x201C; for maintenance, for 200 new locomotives, for UPâ&#x20AC;&#x2122;s computer-aided movement system, and also for expansion, but primarily in the railroadâ&#x20AC;&#x2122;s southern territory.

As can be expected, the type of cargo hauled, and where itâ&#x20AC;&#x2122;s headed, drives UPâ&#x20AC;&#x2122;s expansion plans.

The demand for freight transportation is going to

Union Pacific in Illinois !S OF THE MOST recent year for which information was avail able, Union Pacific Rail road in Illinois had: s MILES OF TRACK s EMPLOYEES s MILLION IN ANNUAL PAYROLL s BILLION IN IN STATE PURCHASES s MILLION IN CAPITAL SPENDING s RAIL CARS ORIGINATING IN THE STATE s

RAIL CARS TERMINATING IN THE STATE

Source: Union Pacific 2AILROAD UP COM

jump â&#x20AC;&#x201C; from 17.6 billion tons carried nationwide in 2011 to a projected 25.1 billion by 2030, Davis said.

RAIL CONTINUED ON C24

Philip Marruffo/pmarruffo@saukvalley.com

Union Pacific moves 42 trains a day through the Sauk Valley, but given the infrastructure already in place, thereâ&#x20AC;&#x2122;s plenty of room for more traffic. Thatâ&#x20AC;&#x2122;s why Union Pacific has no plans to add to its system in the region. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re a fortified area,â&#x20AC;? said Mark Davis, UPâ&#x20AC;&#x2122;s director of corporate relations and media, â&#x20AC;&#x153;and itâ&#x20AC;&#x2122;ll be that way a long time.â&#x20AC;?

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VISION 2030 | TRANSPORTATION & INFRASTRUCTURE

Fracking sand will add to demand Past, present and future in Dixon RAIL

CONTINUED FROM C23

The rail system in place in the Sauk Valley, however, is more than able to handle what chiefly rolls through the area â&#x20AC;&#x201C; trains hauling intermodal containers and coal â&#x20AC;&#x201C; for the foreseeable future, he said. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re a fortified area,â&#x20AC;? he said, â&#x20AC;&#x153;and itâ&#x20AC;&#x2122;ll be that way a long time.â&#x20AC;?

These days, 42 trains a day move through the Sauk Valley. Regionally, that number jumps to 88 when you get closer to, say, Geneva and add commuter trains, he said.

But given the infrastructure already in place, thereâ&#x20AC;&#x2122;s plenty of room for more traffic. â&#x20AC;&#x153;From 2007 to 2013, we invested more than $21.6 billion in our network and operations,â&#x20AC;? which included beefing up UPâ&#x20AC;&#x2122;s

capacity for intermodal and coal traffic in its northern region, he said.

In addition to intermodal shipping containers and coal, UP hauls agricultural, industrial and automotive products, and chemicals.

The cargo that will be demanding more of the railroadâ&#x20AC;&#x2122;s time, though, will be oil-industry related: fracking sand, moving from Minnesota to Texas, and pipe, which is made in the south and ships north, Davis said. So for the next few years, the railroad will concentrate on opening lines, adding bridges, and doing other enhancement projects in the southern states.

For the reasons previously mentioned, Davis also doesnâ&#x20AC;&#x2122;t expect significant changes to or expansion of Union Pacificâ&#x20AC;&#x2122;s Rochelle Global III Intermodal Terminal, either, which the railroad

describes as â&#x20AC;&#x153;the industryâ&#x20AC;&#x2122;s finest state-of-theart facility, designed to serve as a critical interchange hub and loading/ unloading terminal for rail intermodal shipments moving through the western Iowa and Wisconsin.â&#x20AC;? â&#x20AC;&#x153;This expansive facility allows Union Pacific the necessary capacity to improve and expedite operations for current shipments, as well as room for additional expansion to keep pace with the projected growth in what is forecast to be a robust intermodal market for years to come,â&#x20AC;? the company says on its website, www. up.com.

The Rochelle intermodal terminal is one of four UP has in the state.

The others are in Chicago, Northlake and, the newest, Joliet, completed in 2010.

ADVANCE EMS

F

BY JIM BURKE $IXON MAYOR

ortunately, the most expensive infrastructure in Dixon has been replaced or upgraded.

We have an $18 million state-of-the-art wastewater treatment plant that can be incrementally upsized in capacity to handle twice the current population.

At a cost of $14 million, radium and arsenic impurities are removed from our water supply, allowing the city to provide some of the highest-quality drinking water in the nation to its residents and industry.

Finally, the Galena and Peoria avenue bridges have been replaced by modern 6- and 4-lane structures incorporating safe, roomy pathways for pedestrians and cyclists.

However, much reinvestment will be required

during the next 20 years to maintain and expand infraMayor Jim structure Burke required to grow the city and the area.

With Dixon approaching its 200th birthday in 2032, the city has sewer and water lines more than 100 years old â&#x20AC;&#x201C; out of sight, but not out of mind â&#x20AC;&#x201C; that will need replacing.

For example, East River Street from downtown to state Route 2, and all the sewer and water lines underneath, need replacing now.

Miles and miles of residential streets will require repaving, and in many cases replacement of curbs and gutters.

To attract new jobproducing industries to Dixon and Lee County,

it will be necessary to build new roads and widen current ones, and extend sanitary sewer and water mains to serve those industries.

That will not be cheap.

In the Sauk Valley, one of the worst infrastructure problems for decades was the stretch of Route 2 between Dixon and Sterling.

Thanks to the Illinois Department of Transportation and our state legislators, we now have a safe, efficient 4-lane highway connecting the two cities.

When the upgrade of U.S. Route 30 between Fulton and Rock Falls is completed, we will have another transportation enhancement.

Infrastructure upgrades to our communities and counties in the years ahead are part and parcel of maintaining our quality of life and growing in the Sauk Valley.

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VISION 2030 | INFRASTRUCTURE

Want good roads, sewers?

It will cost you

Philip Marruffo/pmarruffo@saukvalley.com

When the First Avenue bridge reconstruction was completed in 2012 between Sterling and Rock Falls, the Sauk Valley reached a milestone â&#x20AC;&#x201C; none of its bridges crossing the Rock River are considered structurally deficient. The Illinois Department of Transportation is, however, planning to work on the substructure of the Avenue G bridge connecting the Twin Cities.

Local communities pay price for lack of maintenance

BY KATHLEEN A. SCHULTZ kschultz@saukvalley.com

EXT

Roads, sewers and water mains. Wells, bridges and dams. They are among the internal organs that keep cities alive and well.

Unfortunately, the aging Sauk Valley needs more than a little work done.

According to the American Society of Civil Engineers, weâ&#x20AC;&#x2122;re not alone.

ASCE gave the state of Illinois a D+ in its 2010 Report Card for Americaâ&#x20AC;&#x2122;s Infrastructure (www. infrastructurereportcard. org). The 2014 report is due out soon.

The nation as a whole got the same grade.

According to ASCE, Illinois will need to spend $17.5 billion over the next 20 years to bring sewer treatment plants up to snuff, and $15 billion to improve drinking water quality.

More than 2,300 bridges are structurally deficient, and 73 percent of the stateâ&#x20AC;&#x2122;s major roadways are in poor to mediocre condition, which costs motorists $2.4 billion a year in extra vehicle maintenance and repair costs. Thatâ&#x20AC;&#x2122;s $292 a year for each motorist.

In the Sauk Valley, many communities have had to upgrade their wells to meet new EPA standards on the amount of allowable radium in the water, and to replace sewer treatment plants that reached the end of their functional lives and no longer could meet EPA standards for effluent discharge.

Businesses looking to locate in an area want to

know that their street, water and sewer needs will be met.

The challenge, many community leaders say, is finding the money to pay for the work.

Morrison, for example, is preparing to build a $20 million wastewater treatment plant, the money for which will be paid back over 20 years with increased sewer rates. And most of its 30 miles of roads are â&#x20AC;&#x153;in dire need of repair,â&#x20AC;? Mayor Everette Pannier said, adding that â&#x20AC;&#x153;state and federal funds to augment road and water improvements seem to be nonexistent.â&#x20AC;? â&#x20AC;&#x153;Finding alternative revenue sources is a huge challenge for cities, and unfortunately, unless the state and federal governments can provide some sort of assistance, communities such as Morrison, after paring back all the basic budget items, must consider other taxing options, be that a special use tax, increased sales tax, or as a last resort, increased property tax,â&#x20AC;? the mayor predicts.

A decade ago, Dixon City Council passed an ordinance to increase sewer rates by 3 percent a year until 2021 to build its new wastewater plant. At that time, the city obtained an $18.4 million loan to pay for it.

Last year, the village of Mount Morris paid for its new $12 million sewer plant by implementing 3 years of water and sewer surcharges, which gradually increased residentsâ&#x20AC;&#x2122; bills. The base water rate went from $8.57 to

$12 for 350 cubic feet of water; the base sewer rate more than doubled, from $14.47 to $32.69 for 350 cubic feet.

The temporary hardship on residents put the water departmentâ&#x20AC;&#x2122;s operating fund back in the black, though, and having a plan in place to pay for the work made the village eligible for low-interest loans and grants from the Illinois Environmental Protection Agency.

In the end, the plant cost Mount Morris â&#x20AC;&#x153;onlyâ&#x20AC;? $9 million, and as promised, the surcharges were dropped.

And thanks to IEPA regs, the plant has the capacity to handle growth, which is important when attracting new businesses, Village President Greg Unger said at the time.

In Whiteside County, the village of Tampico is finding itself in similar straits. With the help of state grants, including one from the Illinois Department of Commerce and Economic Opportunityâ&#x20AC;&#x2122;s Community Development Assistance Program, it has moved and upgraded an obsolete lift station and installed two aeration systems at its sewer treatment plant.

But it, too, raised sewer rates for its residents, and thatâ&#x20AC;&#x2122;s not going away. Looking down the road, the rate hike will be used for ongoing maintenance and repair of its century-old water system, said Kathy Leathers, Tampicoâ&#x20AC;&#x2122;s clerk and treasurer.

GOOD CONTINUED ON C27

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VISION 2030 | INFRASTRUCTURE

Infrastructure improvements paramount

BY EVERETT PANNIER -ORRISON MAYOR

S

mall towns and cities across the country face many challenges regarding infrastructure upgrades, and Morrison is no exception.

As we look back a few years and forward for the next 5, 10 or even 20 years, one thing stands out, and thatâ&#x20AC;&#x2122;s the need for infrastructure improvements.

In Morrison, we have been fortunate to have had the Illinois Department of Transportation construct two bridges over U.S. Route 30 in the past 5 years, one on the east end over French Creek and one on the west end over Rock Creek.

In 2015, IDOT will be reconstructing the bridge over French Creek on state Route 78 just south of town.

These will all provide improved conditions for years to come.

For the town itself, we are undertaking a huge

program to build a new wastewater treatment plant that will require an expenditure of over $20 million to be paid back in 20 years by increased sewer rates.

This is a heavy burden on our citizens, and currently there are no outside funding sources from either the state or federal level available to lessen the cost on our taxpayers.

The good news is that this new facility will serve Morrison for decades to come.

Looking forward, the technology field continues to amaze, and with i-fiber and other continuing improvements in telecommunications, one can only imagine what the future holds in these areas.

On the down side, Morrison has more than 30 miles of streets and roads, most of which are in dire need of repair.

Having the opportunity to occasionally drive in neighboring commu-

nities, it appears that we are all in the same boat.

State and federal funds Mayor to augEverett ment road Pannier and water improvements seem to be nonexistent.

Finding alternative revenue sources is a huge challenge for cities, and unfortunately, unless the state and federal governments can provide some sort of assistance, communities such as Morrison, after paring back all the basic budget items, must consider other taxing options, be that a special use tax, increased sales tax, or as a last resort, increased property tax.

State and federal entities must make infrastructure improvements a priority, including assistance to cities, and at the same time they need to pay closer atten-

WOULDN T HAPPEN UNTIL WELL AFTER MOST OF US HAVE LEFT THIS EARTH !S IT HAPPENS MOST OF ROAD MONEY COMES FROM THE STATE )N CASE YOU VE MISSED THE HEADLINES A GREATER CHUNK OF STATE MONEY HAS GONE TOWARD JUST ABOUT EVERYTHING BUT ROADS ) WISH ) COULD BE OPTIMISTIC ON THIS SUBJECT BUT THE FACTS ON THE GROUND INDICATE OTHERWISE Jeff Rogers, managing editor: &OR IN THE 3AUK 6ALLEY ) ENVISION ELECTRIC CARS BEING DRIVEN ALONG NEWER ROADS What do SVM newsroom AND OVER IMPROVED BRIDGES 4HERE WILL BE members think will be the FEWER CARS ON THE ROADS MORE PEOPLE WILL greatest advance in BE TRAVELING BY HIGH SPEED RAIL 4HERE WILL infrastructure or the BE FEWER SEMITRAILERS ON THE ROADS AGAIN

MORE GOODS WILL BE SHIPPED BY RAIL environment locally between /VERLY OPTIMISTIC 0ROBABLY "UT ) THINK now and 2030?

ENVIRONMENTAL SHIFTS AND A NEED TO CREATE David Giuliani, news editor: &OR MANY NEW JOBS WILL FORCE SOMETHING TO HAPPEN YEARS THE STATE HAS BEEN PLANNING THE WID- IN OUR NATION S CAPITAL AND STATEHOUSES

ENING OF 5 3 2OUTE FROM 2OCK &ALLS TO OR PERHAPS THE ELECTORATE TO FORCE THESE &ULTON &OUR LANES WOULD MEAN ECONOMIC KINDS OF CHANGES DEVELOPMENT BENEFITING THE 3AUK 6ALLEY -ORRISON -AYOR %VERETT 0ANNIER THOUGH

Pam Eggemeier, reporter: )NFRASTRUCACKNOWLEDGES SUCH A PROJECT PROBABLY TURE AND ENVIRONMENTAL REGULATORY COSTS

WHAT DO WE THINK?

tion to laws and regulations that they are creating but not funding that have a severe negative impact on local budgets.

There is always a fine line between supporting economic development through infrastructure improvements and tax incentives, and saying no to developers.

As we move forward we must be weighing the short-term cost of assisting development against the long-term gains of adding jobs and growing our tax base.

I am hopeful that over the next couple of years, the region will see the opening of the prison at Thomson, resulting in increased population growth that will require improved rental properties as well as new housing developments.

If we are able to do that, then additional small businesses will follow, and our overall economy will slowly improve.

One other issue facing Whiteside County, but

more specifically Morrison, is the discussion regarding the possibility of making Route 30 four lanes from Fulton to Rock Falls.

The studies that have been done indicate that if this becomes a reality, the four lanes will go around Morrison to the south or north. As of now, both routes are still under consideration.

Considering the financial situations of both the state and federal governments, the likelihood of this happening in the near future is almost nil, in my opinion.

However, that being said, if four lanes become a reality, we certainly would want it to be as close to Morrison as possible with exits into Morrison.

Businesses that rely on drive-by patronage could be negatively impacted, therefore it is imperative that if we have a four-lane loop around Morrison, that marketing and other

WILL CONTINUE TO BE HUGE BUDGET BUSTERS AT EVERY LEVEL OF GOVERNMENT BUT PARTICULARLY AT THE MUNICIPAL LEVEL 7HILE INFRASTRUCTURE IS A KEY COMPONENT TO ECONOMIC DEVELOPMENT IT HAS NOW DETERIORATED TO THE POINT WHERE IT HAS BECOME A PRESSING PUBLIC SAFETY ISSUE 4HERE HAS BEEN TALK FOR MANY YEARS OF THE REBIRTH OF AN &$2 $EPRESSION TYPE PROGRAM TO PLAY CATCH UP WITH THE CRUMBLING INFRASTRUCTURE ) M NOT SURE IF THAT IS THE FORM IT WILL TAKE BUT GIVEN THE COSTS

THE FEDERAL GOVERNMENT IS GOING TO HAVE TO TAKE THE LEAD ON THIS AND SOMEHOW BRING RESOURCES TO THE PROBLEM 7HILE IT WILL BE COSTLY THE SILVER LINING IS JOB CREATION

assistance, up to and including possible relocation, be provided.

The best solution is for us to continue to work to make Morrison a â&#x20AC;&#x153;destinationâ&#x20AC;? point for jobs and tourism so that, regardless of Route 30, people have reasons to come into our fine city.

In summation, Morrison has its infrastructure problems just like most cities in the area.

We will keep addressing the issues as best we can with the funding we have available, however, current funding is not adequate so we must be frugal but at the same time actively seek out other alternative revenue sources.

Whichever communities can successfully solve their infrastructure problems will find themselves with positive growth issues. Wouldnâ&#x20AC;&#x2122;t that be a nice problem to have?

We in Morrison hope to be in that position during this decade.

MENTION MORE RESPONSIBLE CONSUMPTION OF NATURAL RESOURCES !LL THIS SAID CAN ) JUST SAY THAT ) LOVE THE AIR HERE 7HILE ) LOVE VISITING CITIES LIKE -ILWAUKEE AND #HICAGO ) QUICKLY MISS KNOWING n FOR THE MOST PART n WHAT ) M BREATHING

Angel Sierra, online editor: 4HE &EDERAL (IGHWAY !DMINISTRATION S &(7! /FFICE OF 0LANNING %NVIRONMENT AND 2EALTY HAS TRANSPORTATION PLANNERS WHO MIGHT REFER TO OUR AREA AS hDEVELOPED RURAL v 4HAT IS hCOUNTIES OR REGIONS WITH ONE OR MORE POPULATION CENTER S OF OR MORE v ACCORDING TO THE &(7! WEBSITE %VERYTHING WILL BE ON THE PLATE FOR REPLACEChristopher Heimerman, news edi- MENT OR REPAIR BY ,ACK OF FUNDING IS A tor: 7HILE FAST FOOD SERVING SIZES SWELL AND STRONG CONDUIT OF INFRASTRUCTURE DETERIORATION FOODS BECOME FURTHER GENETICALLY MODIFIED 4HE 3AUK 6ALLEY S ARTERIES n ROADS BRIDGTHE TIGHTENING OF EMISSION REGULATIONS AND ES PIPES CABLES AND SEWER n WILL REQUIRE THOSE ELECTRIC CARS TO WHICH MANAGING EDI- CONTINUOUS MAINTENANCE AND AS A COMTOR *EFF 2OGERS ALLUDED TO ARExWELLxA MUNITY IT LL BE OUR RESPONSIBILITY TO DETERBREATH OF FRESH AIR MINE WHAT S IMPORTANT BY EDUCATING OUR)N A LOT OF WAYS IT S GETTING HARDER TO BE SELVES AND EXERCISING OUR POWER TO VOTE HEALTHIER "UT ADVANCEMENTS IN TECHNOLMORE ON C27 OGY ARE GOING TO LEAD TO CLEANER AIR NOT TO

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VISION 2030 | INFRASTRUCTURE & TRANSPORTATION growing non-farm population wonâ&#x20AC;&#x2122;t stand for it.

WHAT DO WE THINK? What do SVM newsroom members think will be the greatest advance in infrastructure or the environment locally between now and 2030?

Philip Marruffo/pmarruffo@saukvalley.com

Traffic flows slowly across the First Avenue Bridge connecting Sterling and Rock Falls during a rebuilding in 2012. The bridgeâ&#x20AC;&#x2122;s reconstruction has drawn attention to the riverfront development area in Rock Falls.

Growth drives community decisions GOOD

CONTINUED FROM C25

Money from the economically strapped state still is coming in, although perhaps not as quickly as civic leaders would like.

The state CDAP grants target areas with populations of less than 50,000 that are outside urban counties.

In December, $299,000 in CDAP money went to

WHAT DO WE THINK? What do SVM newsroom members think will be the greatest change in transportation will be in the Sauk Valley by 2030?

David Giuliani, news editor: I would love to believe driverless cars are THE WAVE OF THE FUTURE "UT I donâ&#x20AC;&#x2122;t think thatâ&#x20AC;&#x2122;s going to happen in the Sauk Valley or anywhere else ON A LARGE SCALE BY (Thereâ&#x20AC;&#x2122;s a lot of technology involved; how would a driverless car have handled the latest atrocious WINTER Some may contend trains will become more widespread. I really doubt it. The upfront costs are high, and we donâ&#x20AC;&#x2122;t invest in such infrastructure as WE DID SAY IN THE S RAILROADS AND S THROUGH S INTERSTATE HIGHWAY SYSTEM The biggest change, in my view, will be cars that are even more fuel efficient. We have already made great strides in that direction.

Christopher Heimerman, news editor: Honestly, I donâ&#x20AC;&#x2122;t see a whole lot changing, in terms of how folks get around in THE 3AUK 6ALLEY #ARS WILL BE MORE FUEL EFFICIENT "UT I donâ&#x20AC;&#x2122;t see there being fewer cars.

I also donâ&#x20AC;&#x2122;t see an uptick in terms of reliance on rail system or air travel.

Nor do I see considerable changes being made in public transportation. The small cities and towns in the Sauk Valley, which is not exactly sprawling, do not lend to people relying on buses and cabs to get them where theyâ&#x20AC;&#x2122;re going.

Weâ&#x20AC;&#x2122;ll change how we shop for the vehicle that gets us around, but I donâ&#x20AC;&#x2122;t see us straying from that vehicle.

Jim Dunn, opinion page editor: Flying cars BY .OT LIKELY 4HEY

two other Sauk Valley communities for infrastructure work.

In Carroll County, Savanna was given a $149,000 grant for sewer line design and lift station improvements, which was the total cost of the project, while Ogle County was given a $150,000 emergency setaside fund grant to be used for any water and sewer work where systems are at risk of failure.

When it comes to road, DIDN T MAKE IT BY

either. And imagine the MAYHEM "UT MANY VEHICLES THAT donâ&#x20AC;&#x2122;t follow Fordâ&#x20AC;&#x2122;s lead (incorporating more lightweight aluminum in its PICKUPS TO LOP OFF POUNDS WILL HAVE TO shrink to achieve federal fuel economy standards.

Passenger rail travel, if it comes to the Sauk ValLEY BY COULD BE A boon. People who live near Dixon, Sterling and Rock Falls would have the option to drive to a local railroad station, board a train, and commute to #HICAGOLAND FOR EMPLOYment, culture and recreation.

And people who live in the city might move here for the quality of life. #ONSIDER 0RINCETON %IGHT Amtrak trains pick up and discharge passengers daily.

Usage continues to grow.

The Sauk Valley could use that type of boost.

Angel Sierra, online editor: Today, Amtrak is the only passenger rail provider that services rural areas in the United States. The big money for companies like this is in the emerging high-speed transportation sector, but larger population centers tend to be favored, according to the Federal Highway Administrationâ&#x20AC;&#x2122;s website.

Iâ&#x20AC;&#x2122;d like to see the Sauk Valley pivot to widespread passenger rail usage. A change like this would make long-distance comMUTING TO #HICAGO EASIER )T also would make the Sauk Valleyâ&#x20AC;&#x2122;s tourism resources more accessible.

Will this change come BEFORE )T S POSSIBLE

but I wouldnâ&#x20AC;&#x2122;t bet on it.

In the interim, weâ&#x20AC;&#x2122;ll see higher gas prices, and as a result, cars with increased fuel efficiency.

Pam Eggemeier, reporter: Transportation-related technology is developing at a rapid pace, but at the end of the day, the direction it takes depends on politics â&#x20AC;&#x201C; namely our energy policy. The efforts of ENERGY VISIONARIES LIKE %LON Musk have historically been impeded by special interest groups. Rail transportation should

sewer and water work, itâ&#x20AC;&#x2122;s always difficult to determine when and how much of a burden taxpayers must bear â&#x20AC;&#x201C; especially for the smaller municipalities, which canâ&#x20AC;&#x2122;t spread the pain as far as larger cities can.

Tampico, for instance, has all of 790 residents, compared to Morrisonâ&#x20AC;&#x2122;s 4,100 and Dixonâ&#x20AC;&#x2122;s 15,400.

No matter the size, though, as a driving factor for a cityâ&#x20AC;&#x2122;s future continue to play a big role in economic activity. The interesting part will be how we embrace the passenger part of the equation, especially high-speed rail where our region has a vested interest.

Washington needs to develop a real energy policy so we can determine what are fads, bridge technologies, and long-term solutions. The money invested in fracking, and the effect itâ&#x20AC;&#x2122;s had on the nationâ&#x20AC;&#x2122;s economy, virtually guarantees that natural gas will continue to be developed as a fuel. The nationâ&#x20AC;&#x2122;s trucking fleets can save a great deal of money if we invest in that infrastructure.

health, growth is always a concern. â&#x20AC;&#x153;There is always a fine line between supporting economic development through infrastructure improvements and tax incentives, and saying no to developers,â&#x20AC;? Pannier said. â&#x20AC;&#x153;As we move forward, we must be weighing the short-term cost of assisting development against the long-term gains of adding jobs and growing our tax base.â&#x20AC;? #OMPANIES LIKE "ORG7ARner in Dixon will continue to find themselves in an economic sweet spot with their continued development of environmentally friendly automotive technology.

Matt Mencarini, reporter: I donâ&#x20AC;&#x2122;t think weâ&#x20AC;&#x2122;ll have flying cars or JETPACKS IN ALTHOUGH I hope Iâ&#x20AC;&#x2122;m wrong.

I think transportation in THE NEXT YEARS WILL GET more efficient. I think cars and trains and planes will get better performance from their fuels. Although I donâ&#x20AC;&#x2122;t like the idea, I think more automation will probably find its way into our cars. They already help us

Barnacopia is available for many types of events

Jim Dunn, opinion page editor: Illinois needs to replace many of its aging bridges during the next YEARS "Y BRIDGE engineers must respond by developing more prefabrication techniques to speed the process so that it no longer takes an entire construction season to replace one two-lane bridge on a state highway.

Look for the cost of driving a motor vehicle, unfortunately, to skyrocket. As vehicles become more fuel efficient, current motor fuel taxes wonâ&#x20AC;&#x2122;t generate enough revenue for infrastructure. Higher motor fuel taxes and higher fees for driverâ&#x20AC;&#x2122;s licenses and license plates will become a reality.

Regarding the environment, look for area farmers to figure out â&#x20AC;&#x201C; on their own, or because of consumer pressure or government edict â&#x20AC;&#x201C; how to limit the escape of ag chemicals such as nitrogen and phosphorus into waterways that then flow downstream to contribute to the Gulf of Mexicoâ&#x20AC;&#x2122;s massive hypoxic zone, aka dead zone. At some point, the park and stop.

I like to think there will be more trains and more Amtrak stops. Thereâ&#x20AC;&#x2122;s something beautiful about traveling on a train, and while I might be letting my heart lead me on this, Iâ&#x20AC;&#x2122;d like to think there could be a rebirth of trains, if technology can reduce the costs of running them.

Christi Warren, reporter: I think the greatest change in transportation will be an extension, or at least the proposal, for an extension to the rail systems that take PEOPLE INTO #HICAGO Sixteen years seems like a long time to me â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s

Matt Mencarini, reporter: The internet, I think itâ&#x20AC;&#x2122;s safe to say, isnâ&#x20AC;&#x2122;t a fad. Itâ&#x20AC;&#x2122;s in almost every aspect of our lives, and faster internet speed will only further connect the world. ) THINK BY INTERNET infrastructure â&#x20AC;&#x201C; fiberoptic cables and wireless routes â&#x20AC;&#x201C; will automatically be built into any highway, street or capital improvement project. Imagine having the capability to connect to the INTERNET FROM YOUR CAR miles south of Rock Falls ON STATE 2OUTE )MAGINE walking through downtown Dixon and having high speed internet access.

This infrastructure not only helps us check the score of THE "EARS GAME OR STREAM music, but it will help businesses be competitive and connected to the future, which Iâ&#x20AC;&#x2122;m assuming has Wiâ&#x20AC;&#x201C;Fi. Christi Warren, reporter: "Y THE 3AUK Valley should expect to see more farming of natural resources to produce energy â&#x20AC;&#x201C; or at least the proposal of such infrastructure.

That controversial wind FARM IN ,EE #OUNTY 9EAH

that wonâ&#x20AC;&#x2122;t be the last. Harnessing wind, solar, and water energy is the future of energy independence in America, and the Sauk Valley wonâ&#x20AC;&#x2122;t be immune to it. #ARS BY THEN TOO WILL BE operating on alternative energy sources. The idea of driving down Interstate 88 and seeing only â&#x20AC;&#x201C; or mostly â&#x20AC;&#x201C; electric cars thrills me to no end. It will mean cleaner air, water, and soil for our children and our grandchildren. more than two-thirds of my life â&#x20AC;&#x201C; so it seems like a lot of change could be possible. As I mentioned previously, I have no doubt that the majority of cars on THE ROADS IN WILL BE fully electric, or if not fully, at least hybrids.

As climate change starts to feel more and more real, and fewer people deny its actuality, I think more legislation will be proposed to regulate Americanâ&#x20AC;&#x2122;s notoriously conspicuous consumption and production of toxic materials. Setting higher standards for clean methods of transportation seems like the obvious road for legislators to take.

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