March April 2015 VOICE Magazine

MARCH/APRIL 2015

THURSTON COUNTY CHAMBER OF COMMERCE

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Diamond Technology Innovations: Ingenuity, Miracles & Grit See page 14

Startup playbook: Three Magnets Brewing Co. See page 6

B UI LDI NG COMMUNITY PROSPERITY FOR 140 YEARS

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IT'S ABOUT EDUCATION APRIL 3, 6:00 P.M. RED LION HOTEL OLYMPIA

Make "A Night on the Town" the Event to Remember Support the Chamber Foundation, Connecting Education and Business for 22 years.

A Night on the Town is the Chamber's premiere fund-raising event, supporting & celebrating a twenty-year investment in community education and the leadership programs of the Chamber Foundation. A Night on the Town is the not-to-be-missed event and includes: • Entertainment • An Exclusive Live Auction • Cocktail Hour, Dinner & After Party • And a few surprises!

Friday, April 3 6 p.m. Cocktail hour, 7:30 p.m. Dinner & Live Auction Red Lion Hotel Olympia $125 per person, $1000 table of eight Stay the night! Great Room Rates are available: $89 +tax, includes breakfast for two!

Presenting Sponsor:

Event sponsorships are available. Call the Chamber at 360.357.3362 for information.

The 2014 event sold out, don’t miss A Night on the Town 2015. Mark your calendar

and make your reservation now at www.thurstonchamber.com

www.thurstonchamber.com

www.thurstonchamber.com

CONTENTS

CALENDAR

Page 5 ....................Editor's Letter: Business 2 Youth Connect Page 6 ............Startup Playbook: Three Magnets Brewing Co.

March 3 Morning Mixxer - 7:30 - 8:30 a.m. - Senior Services for South Sound, 222 Columbia St NW, Olympia.

March 5

Page 7 ...........................................Chamber Advocacy Update

Young Professionals Network - 5:30 p.m. - 7:30 p.m. Pellegrino's Event Center, 5757 Littlerock Rd, Tumwater

Page 9 .......Boomers, Business & Millennials & Volunteerism

March 11

Page 10.........................Networking Events for March & April

Forum - 11:30 a.m. - 1 p.m. - Red Lion Hotel Olympia Topic: Best of South Sound.

March 19

Page 13.............................March Forum: Best of South Sound

Business After Hours - 5:30 p.m. - Best Western Plus 8326 Quinault Dr, Lacey.

Page 14 ...............................Diamond Technology Innovations

April 2

Page 21 ............................................Welcome, New Members!

Young Professionals Network - 5:30 p.m. - 7:30 p.m.

Cooper Point Public House, 3002 Harrison, Olympia.

April 3 Page 23 ..........April Forum: Thurston Green Business Awards

A Night on the Town - 6:00 p.m.

Red Lion Hotel Olympia, 2300 Evergreen Park Dr SW

Page 25.........................................Leadership Thurston County

April 7

Copyright © 2007 Thurston County Chamber ALL RIGHTS RESERVED Published bimonthly by the Thurston County Chamber.

809 Legion Way SE P.O. Box 1427 Olympia, WA 98507

Morning Mixxer - 7:30 a.m. - 8:30 a.m. - Mantis Graphix, 7920 Center Street SW # C, Tumwater.

April 8 Forum - 11:30 a.m. - 1 p.m. - Red Lion Hotel Olympia Topic: Thurston Green Business Recognition.

www.thurstonchamber.com info@thurstonchamber.com 360.357.3362

April 16 Business After Hours - 5:30 p.m. - Cross Insurance 2745 Martin Way E, Suite A, Olympia.

Join the conversation online at facebook.com/ThurstonCountyChamber.

These events require pre-registration at www.thurstonchamber.com

BUILDING COMMUNITY PROSPERITY FOR 140 YEARS Diamond Investors:

Platinum Investors

Anchor Bank Heritage Bank Phillips Burgess Physicians of Southwest Washington

Port of Olympia Versoria

Executive Officers Ron Bruchet, Chair GHB Insurance Mariella Cummings, Chair Elect Physicians of Southwest WA Jessica Coen, Vice Chair Xerox Company Neil Woody, Treasurer McSwain & Company P.S. Mike Marohn, Past Chair 94.5 ROXY

Capital Medical Center FORMA Construction KeyBank Lucky Eagle Casino & Hotel Mills & Mills Funeral Home & Memorial Park Morningside TwinStar Credit Union Washington Business Bank Xerox

CHAMBER BOARD & STAFF Board of Trustees

George Barner, Port of Olympia

Bryan McConaughy, Puget Sound Energy

Michael Cade, Thurston EDC Jean Carr, SCJ Alliance David Cullen, David D. Cullen Dick Cvitanich, Olympia School District

Drew Phillips, FORMA Construction Cheryl Selby, Vivala Kevin Stormans, Stormans Inc. Ann Sweeney, Red Lion Hotel

Cheryl Fambles, PAC Mountain Workforce

Faith Trimble, The Athena Group Elyse Villanueva, Heritage Bank

Development Council Perry Hanchey, Diamond Technology Innovations Sandi Wilson, Thurston First Bank

Editor: David Schaffert Layout & Design: Natasha Ashenhurst of Mosaic Marketing Studio Cover photo: Courtesy of Diamond Technology Innovations. Printing: Print NW 4 • March/April 2015 Thurston County Chamber VOICE

Gold Investors

America's Credit Union • Cabinets by Trivonna Columbia Bank • The Creative Office Express Employment Professionals First Citizens Bank • GHB Insurance Great Wolf Lodge • Jessica Jensen Law PS McSwain & Company PS Nisqually Red Wind Casino Olympia Orthopaedic Associates Pardiman Productions Providence St. Peter Hospital • Puget Sound Energy Red Lion Hotel Olympia • Saint Martin’s University SCJ Alliance • TAGS • The Governor Hotel

Chamber Staff David Schaffert, President/CEO Sytease Geib, VP Workforce Development Marny Bright, VP Member Services Alisha Blain, Events Coordinator Laurie Bjerke, Admin. Assistant Debbie Burk, Business2Business Kathleen Cooper, Business2Business Beth Johnson, Member Services Judy Reynolds, LeadershipThurston County Rachael Lebon, Business2Business Pam Singleton, Finance Officer Jeff Hutchens, Member Services Martha Wagner, Member Services Michele Winn, Camo2Commerce

Chamber Launches Work-Integrated Learning Program with Olympia School District

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t is with great excitement and much anticipation that the Thurston County Chamber Foundation launches Business 2 Youth Connect (B2Y Connect).

B2Y Connect is a workplace integrated learning pilot program that will assist youth in the Olympia School District with integrated learning opportunities including job coaching, business-in-class engagement, internships and job opportunities.

Studies show that students who take part in high school work experiences — such as internships, job shadowing and mentoring — are more likely to stay in school, graduate and adopt ambitious goals. For many, taking part in workplace-integrated learning can be the link to a lifetime of success.

So what’s in it for business?

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B2Y Connect helps students realize that there are incredible career opportunities in Thurston County.

"Studies show that students who take part in high school work experiences, such as internships, job shadowing, and mentoring are more likely to be inspired to stay in school, graduate and adopt ambitious goals. For many, taking part in work integrated learning can be the link to a lifetime of success."

What is missing is a bridge between the world of learning and the world of business. Our community’s parents, educators and business leaders believe we can build that bridge through the creation of workplace-integrated learning and career development opportunities — all of which can provide missing skills and help students find success in today’s job market.

Education, more than ever, needs the support of community. B2Y

David Schaffert VOICE Editor & President /CEO Thurston County Chamber www.thurstonchamber.com

Connect will be a multiplier for engagement by communities in schools. Instead of additional resources being used by school districts to engage business, the Chamber — through B2Y Connect — will develop and deliver the needed engagement asked for by the schools.

• B2Y Connect helps bridge the skills gap of students leaving high school and college by communicating the work-ready skills needed at your business.

• Increase your business’ visibility and highlight your community involvement by getting directly involved, or by becoming a program sponsor.

• Help build Thurston County into a workforce-strong and economically vibrant region.

The Chamber is partnering with the Olympia School District during the initial launch of the program. Once we gain experience, we’ll be looking to expand the program throughout the region. Stay tuned. ●

Ron Bruchet Board Chair Thurston County Chamber President GHB Insurance Thurston County Chamber VOICE  March/April 2014 5

STARTUP PLAYBOOK: Three Magnets Brewing Co.

By Natasha Ashenhurst

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hipotle, Panera Bread and Vic’s Pizzeria all have something in common, they offer ‘fast casual’ dining, and are part of the fastest growing segment of the restaurant industry. The model: lower labor costs by having customers order as they walk in, rather than at the table, and then pour those savings into building a menu that offers high quality and often locally sourced food.

Nate and Sara Reilly, owners of Three Magnets Brewing Co. and Darby’s Café explained the concept behind Three Magnets, “The 30-something demographic, our target market, wants high quality food fast and they want to know what to expect right when they walk in the door. This is how they prefer to eat.”

Fast Casual Model And while the fast casual model is a relatively new idea, the concept behind it is actually quite old, similar to what you’d find at a European pub—a restaurant that is the center of the community, a place where you can bring your family, walk around visiting, and enjoy conversation at community, farmhouse style tables while drinking locally crafted beer and eating incredible food.

Nate and Sara are both graduates of Evergreen State College. Sara grew up in Olympia and Nate moved here from Eastern Washington in the mid nineties.

“We had always wanted to own a restaurant. When the real estate market was low we bought a house. After a few years we made enough money on it to buy a restaurant. In 2005, Darby’s was

for sale, so we bought it. But, we still wanted to start something from scratch,” said Sara.

An Entrepreneur at Heart Sara managed the restaurant while Nate worked as a graphic designer for the City of Olympia, and while Nate loved his work with the city, he admits he is an entrepreneur at heart.

“I knew I needed to pursue my dreams.

Sitting in a cubicle forever could have left me with life-long doubts about what could have been.

But pursuing this dream, even if we failed, would be an immeasurable learning experience. We knew no matter what, we’d learn a lot of lessons, some which we’d already learned at Darby’s,” said Nate.

In 2012, Nate had the chance to tour

a building downtown. “The place just screamed ‘brew pub’. I came home and told Sara all about it. We enjoy beer and love food. We didn’t end up in that building, but it started the process,” said Continued on page 26 Nate.

Photos: Top: Daily special at Three Magnets. # 2: Sara, Nate and Elliot Reilly. # 3: A beer sampler. Bottom: Order at the bar.

6 • March/April 2015 Thurston County Chamber VOICE

www.thurstonchamber.com

On February 17, 2015 Senator Patty Murray met with community leaders at an event hosted by the Thurston County Chamber. The Senator addressed growing the economy, transportation issues and helping exiting Service Members.

Advocating for Community

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n any given day the Thurston County Chamber is working with local government representing business interests, is on a panel discussing the future of education and the workforce, and is meeting with community leaders advocating for a stronger economy. Here are a few of the issues we are actively engaged in. To learn more about these issues, or to find out how you can become involved, email info@thursonchamber.com

Better Thurston Here’s what you need to know: In February, the Chamber Board approved the support of forming freeholder elections for the development of a Thurston County Home Rule Charter, called Better Thurston. Better Thurston was brought forward by a collection of elected officials and community members.

The primary elements of the Charter include: increasing the number of County Commissioners from three to five, redistricting of South Thurston County, the election of a county executive and the inclusion of a county-wide initiative/referendum process.

Transportation Here’s what you need to know: The Shared Legislative Partnership — that includes the Thurston Chamber, the Thurston Economic Development Council and local governments — requested a $373 million transportation project for the South Sound. Congestion pressures on I-5 – particularly between www.thurstonchamber.com

Tumwater and Lakewood – regularly disrupts the ability for freight to move efficiently. Puget Sound communities will attract hundreds of thousands more jobs and residents over the next 30 years, worsening an already bad situation on this vitally important corridor.

JBLM Troop Drawdown Here’s what you need to know: The Pentagon is looking to reduce the number of troops by 2020, and Joint Base Lewis-McChord is one of the bases that could be impacted. In January, the Chamber encouraged Chamber & community members to attend a listening session about potential impacts of a troop reduction in our region. You did and we thank all of you who attended the event. You prepared statements, stood in front of the microphone and represented business in Thurston County. Again, thank you.

GrowOlympia Fund Here’s what you need to know: Congratulations to the City of Olympia!

The GrowOlympia Fund, established by The Olympia City Council to retain and grow existing Olympia businesses and in-fill vacant storefronts with new or relocated businesses.

The GrowOlympia Fund offers longer term loans, resulting in smaller monthly payments.

They require a lower down payment and lower interest rates. Chamber President/CEO David Schaffert said, “These are important arrows in the economic development quiver of our community.”

Community Renewal Area (CRA) Here’s what you need to know: For the past 18 months the Chamber has participated with the City of Olympia in the development of the CRA. This year, they will move forward with the CRA. “We believe that CRA will be a valuable tool to address some of the challenges with redeveloping blighted properties,” said David Schaffert.

Business 2 Youth Connect Here’s what you need to know: Business 2 Youth Connect is a workplace integrated learning pilot program. This program will assist youth in the Olympia School District to find future success through job coaching, business-in-class engagement, internships and job opportunities.

Here’s what you need to do: Become a program sponsor.

Set up and maintain a company profile to describe your business, highlighting your unique attributes, and communicating your areas of need to future employees.

Become a career coach. By spending less than an hour per week, you can share your experience and advice with students by contributing to online discussions threads.

Offer work-integrated learning activities. You can post and coordinate activities like job shadowing, company tours, internships and entry-level employment opportunities your business offers directly with students and educators. ●

Thurston County Chamber VOICE  March/April 2015 7

Business, Boomers & Millennials and the Changing Nature of Volunteerism

H

ow many of us made a New Year’s resolution to volunteer our time this year?

And how many of us considered serving meals at a soup kitchen or stocking food at the food bank? Paul Knox, executive director of United Way Thurston County, said that is what most people think about when they consider volunteering.

And while food banks and soup kitchens rely heavily on volunteers, there are so many more organizations in need of help.

How do we find those organizations so they can capitalize on our unique skill sets, time availability and interests?

“In the 1970s and ’80s the idea was ‘just volunteer,’” said Knox. “Today, we are looking at strategies that will help the community. We are directing volunteerism. We are matching skills with need.”

Consider this: In 2011, the oldest baby boomers turned 65. Every day since then, and for the next 19 years, about 10,000 more will cross that threshold.

Research suggests many boomers will seek volunteer opportunities as a means to remain active, use their skills and pursue interests they did not previously have time for.

Now, let’s look at the results of a survey conducted by the United Way in 2014: One third of millennials surveyed said their companies’ volunteer policies

affected their decision to apply for a job.

Thirty-nine percent said that it influenced their decision to interview, and 55 percent said such policies played into their decision to accept an offer.

Add the data up and it helps make sense of the changing nature of volunteerism as we understand it.

This is especially true in United Way’s approach to matching baby boomers with volunteer opportunities. Volunteers over the age of 55 can plug into projects through the Retired and Senior Volunteer Program (RSVP). The program connects volunteers with opportunities that match their skills, experience and schedules.

Supported by a federal grant, Thurston County’s RSVP has a full-time staff, Jeannie Roe Gruber and Jennifer Thompson, that work one-on-one with boomers to find meaningful volunteer positions that will take advantage of their vast range of experience.

“Boomers understand that when you have a lively life after retirement, it keeps

you from getting sick,” said Gruber.

“Volunteers live longer and have a happier life.”

United Way is also changing how they approach youth and millennials.

The annual Millennial Impact Report includes insights on volunteerism of this demographic. The report states that millennials often start with microvolunteering opportunities — like retweeting, liking or true micro-tasks — for causes they care about, followed by one-time volunteering, and eventually participate in group volunteering with friends or coworkers. This all culminates in leadership roles on committees or boards.

“We are interested in expanding people’s idea of what volunteerism is, especially youth,” said Sara Kukkonen, United Way’s community impact coordinator.

“You can work with an arts organization.

You can do high level work and get great experience and enjoy giving back at the same time.”

Continued on page 11

Photo above: Jeannie Roe Gruber, Sara Kukkonen and Paul Knox. www.thurstonchamber.com

Thurston County Chamber VOICE  March/April 2015 9

MA R K YOUR C A L E N DAR! March 3 - 7:30 a.m. am 222 Columbia St NW, Olympia

Morning Mixxer

Join us for coffee and breakfast goodies and help us at our kick-off week for March for Meals! Take a few minutes and join a tour, learn about Meals On Wheels, Senior Community Dining, Stars Adult Day Program and all the services provided to the community by supporting Senior Services for South Sound. ●

March 5 - 5:30 p.m.

April 7 - 7:30 a a.m. m

7920 Center Street SW # C , tumwater

Morning Mixxer Join us for coffee, hot chocolate, granola, yogurt, fruit, oatmeal, and an assortment of pastries at our April Morning Mixxer on Tuesday, April 7 at 7:30 a.m. at Mantis Graphix.

Learn more about the printing and embroidery processes. We have a lot of fun in store for you, including door prizes. ●

April 2 - 5:30 p.m.

5757 Littlerock Road SW, Tumwater

3002 Harrison Ave NW, Olympia,

Young Professionals Network

Young Professionals Network

Pellegrinio's Event Center will be our host this month!

Admission is FREE, Chamber Membership not required. Get ready to make awesome new connections, and be sure to bring a friend! The Thurston Chamber YPN is a great place to interact with new, younger business professionals in a low-pressure environment. Bring plenty of business cards and a smile, and you're set to enjoy a fantastic evening of networking! ●

Cooper Point Public House will be our host this month!

Admission is FREE, Chamber Membership not required.

Get ready to make awesome new connections, and be sure to bring a friend! The Thurston Chamber YPN is a great place to interact with new, younger business professionals in a low-pressure environment. Bring plenty of business cards and a smile, and you're set to enjoy a fantastic evening of networking! ●

March 19 - 5:30 p.m.

April 16 - 5:30 p.m.

8326 Quinault Dr. NE, Lacey

2745 Martin Way E Ste A, Olympia

Business After Hours

Business After Hours

Enjoy wine, beer, appetizers and giveaways when the Best Western Plus Lacey Inn & Suites hosts the Chamber's March after hours. We have 85 beautiful spacious rooms available and meeting space.

Amenities include a deluxe buffet hot breakfast, Wi-Fi, Business Center, Indoor Heated Pool, Spa and Fitness Center. Make new business contacts while you mix and mingle. Bring flyers or promotional material for the flyer table ●

IT’S FIESTA TIME! Come celebrate with us at our new office location, in our very own building! Mexican Fiesta will be the theme for the evening!

Prizes from local artist, Larry Keahey and business owner, Senna Bailey of Posh Locker, a mobile boutique, will be at our building for ladies spring shopping! The Cross Insurance Agency Family looks forward to welcoming all of our local chamber members & community. ●

Morning Mixxer sponsored by Mixx 96 FM and Anchor Bank and is the first Tuesday of each month, from 7:30-8:30 a.m. Locations vary. Includes coffee and pastries. Admission is FREE. Business After Hours is sponsored by 94.5 ROXY and Heritage Bank and is the third Thursday of each month. Locations vary. Admission is free.

More information about upcoming events can be found at www.thurstonchamber.com.

10 • March/April 2015 Thurston County Chamber VOICE

www.thurstonchamber.com

Continued from page 9

Volunteerism as a way of getting workplace experience and learning new skills is an idea that appeals across age boundaries.

“Right now, there are tax sites that help low income folks. This work appeals to people who want to volunteer at a higher level,” said Kukkonen.

“Another opportunity is to become a group leader for workshops assisting individuals to manage life when living with chronic disease. The Crisis Center requires 30 hours of training, but it is free training and a great way to get experience.”

“We want to keep uncovering the wealth of opportunities that offer people satisfying volunteer roles,” said Knox. “Our Volunteer Connection website works as a match making system. You can search through needs, and filter by interest, time and skill levels. We also recruit board members for non-profits.

“We are the broker, but we don’t have to get in the middle.”

Businesses, like WSECU, are driving change in the volunteer community as well. “WSECU pays their employees for eight volunteer hours a year. Target does this. Fred Meyer too, as well as other banks in our community,” said Knox. “The power for business is beyond good public relations. It is about leadership, team building and community connection.

"It is also fun to do as a team, and let’s face it; team building through volunteering is cheaper than a ropes course.”

Ann Flannigan, WSECU’s vice president of public relations helped launch the credit union's volunteer program in 2014. She said, “Our program targets four areas that we value as a company... and employees can use their hours to volunteer in these sectors in one eighthour chunk or little by little throughout the year. We promote the United Way website to connect our employees with www.thurstonchamber.com

opportunities."

“Our participation goal last year was 25 percent, yet 59 percent used their hours.

We see value for the employee, the company and the community,” she said.

Jennifer Dres, right, and Carolyn Hardee volunteer at Big Brothers Big Sisters at Day of Caring 2013.

Other businesses encourage employee volunteerism through contributions to United Way workplace-giving campaigns.

Caring each September. The event places volunteers at more than 40 sites.

“All of the Day of Caring has all the projects go live on the website on the same day and volunteers get to pick the project,” said Knox. “Many businesses consider community connection an important part of what they do, so these opportunities to give and volunteer as a team are important. The bottom line is we are a better community when more people are engaged.”

Jennifer Dres, 33-years-old – a millennial – first started volunteering at a Day of Caring over four years ago while she was working for Engineered Software, Inc.. , which, like WSECU, offers employees up to eight hours of paid volunteer time each year. She said, “Last year, even though I was no longer working for that company, I found a group to volunteer with at Day of Caring. I guess you could say I developed the volunteering habit and love it and want to continue to stay involved.

Ultimately, it is a great way to show my gratitude to the community.” ●

“We are here to support a company’s interest in this and have 210 workplace giving campaigns in the county,” said Knox. “It is a great … leadership tool that we hope more businesses will take advantage of.”

More than 750 local volunteers and 34 agencies participate in a day of volunteering, called Day of Thurston County Chamber VOICE  March/April 2015 11

SAVE T H E DAT E !

A Night on the Town Friday, April 3, 6 p.m.

Red Lion Hotel Olympia $125 per person, $1000 table of eight

Presenting Sponsor:

A Night on the Town is the premiere fund-raising social to support & celebrate a twenty-year investment in community education and leadership programs of the Chamber Foundation.

Make your reservation today!

www.thurstonchamber.com Thurston County Chamber Annual Meeting

Brewfest 2015!

Saturday, August 1

Wednesday, May 13 Red Lion Hotel, Olympia 11:30 a.m. - 1:00 p.m. $35 Members, $45 Non-Members 360.357.3362

June 16, 2015 5:30 p.m. - 7:30 p.m.

For updated information visit: www.thurstonchamber.com

Presenting Sponsors:

Presenting Sponsor:

Port Plaza Noon - 8 p.m.

Last call, 7:30 p.m.

For sponsorship information, contact the Chamber at 360.357.3362.

Brew, food and bands! Proceeds benefit the Thurston County Chamber Foundation Small Business Incubator.

More information about upcoming events can be found at www.thurstonchamber.com.

“

TO PRESERVE THE FINEST TRADITIONS OF

MY CALLING.” – Hippocrates

Celebrating National Doctors’ Day It’s a calling that’s rooted in an oath. To treat the ill and keep them from harm; to protect the privacy of patients; to teach the secrets of medicine to the next generation.

The words of Hippocrates are still revered by physicians today. On Monday, March 30, join us in saying thank you to our community of physicians for providing high quality, compassionate care to patients for more than 30 years.

3900 Capital Mall Dr. SW, Olympia • 888-677-9757 • www.capitalmedical.com

Capital Medical Center is partly owned by some of the physicians who serve our patients.

12 • March/April 2015 Thurston County Chamber VOICE

©2015 BCI www.thurstonchamber.com

Third-Annual Best of South Sound Awards Celebration Set for March 11

F

or the past decade the Olympian has recognized Thurston County businesses with the coveted Best of South Sound award. Readers vote on-line for their favorite business in over 80 categories, including favorites such as Best Bank, Best Real Estate Agent, Best Dentist and of course, Best Buffet.

The Thurston County Chamber and The Olympian are pleased to co-host the third-annual awards ceremony for Best of South Sound category winners. The awards celebration will take place at the Chamber’s Forum on March 11.

We expect a full-house, so advance registration is encouraged.

Forum includes lunch and the cost is $35 for general admission, $25 for prepaid Chamber members, and $30 for members at the door.

Visit www.thurstonchamber.com and to make your reservation today, or 360.357.3362.

Best of South Sound is sponsored by The Creative Office, Columbia Bank and Sound Transactions. ●

www.thurstonchamber.com

Dutch Bros. Coffee of Lacey/Olympia, locally owned and operated by Carrie and Don Wall, was selected as the 2013 Best of South Sound Barista.

Thurston County Chamber VOICE  March/April 2015 13

The founders of Diamond Technology Innovations, Ted and Tanya Jernigan, credit their company's success to continuous innovation, miracles, and never, ever giving up.

By Natasha Ashenhurst

S

omeone stumbling upon a solution to a problem is often the spark of life that sets a company in motion. Add grit — lots of it — and the unwavering faith of family and friends, and success isn’t far behind.

Diamond Technology Innovations’ (dti™) origin followed that pattern. Diamonds provided the solution. Ted Jernigan and his wife, Tanya, provided the grit.

was replaced, and with every system shut down at a paper mill, for example, this meant thousands of dollars spent on downtime.

Ted was a field engineer in the 1980s, installing and maintaining ultra-highpressure water systems for aerospace, automotive, pulp and paper, electronics manufacturers and many other fast growing manufacturing industries. Tanya was president of Olympia Credit Union.

“There was an alternative orifice material, a nozzle made of diamond. On the Mohs hardness scale, a diamond is a 10 and a ruby is a nine, but the disparity between a nine and 10 is exponentially vast. A diamond is to ruby as ruby is to talcum powder,” said Ted. “The up-front cost of a diamond was much higher than alternatives, but they eliminated downtime, so they were the more costeffective solution in the long-run.”

The company Ted worked for used waterjet cutting equipment with nozzles made of ruby, sapphire or synthetic materials. These nozzles failed often, after a few seconds or up to 40 hours of use. Every time a nozzle failed, the system shut down until the failed jewel

At the time, a Japanese company was the sole supplier of diamond nozzles, and their products would only work on

certain types of equipment — and it was expensive.

“Ted’s idea was to make the entire orifice out of diamond and secure it with a superior retaining method to prevent premature failure,” said Tanya. “His idea was that he would not only learn how to make it, but he would make a superior product that would improve the industry.”

Then Ted lost his job.

“My wife and I decided that it was time to start our own business, something that we had always wanted to do, and create something that is unique by developing our own diamond nozzle,” said Ted. “Developing the product was the largest challenge of my lifetime.”

Photo courtesy of dti™, from left: Employees are involved in one of the 38 steps of diamond processing in the Diamond Division. Cutting diamonds at the laser station. The finished product in various sizes.

14 • March/April 2015 Thurston County Chamber VOICE

www.thurstonchamber.com

Photo courtesy of dti™. The employees wearing blue are in the machining division, dti™ Exact, and the employees in white are in the Diamond Division, dti™Core.

Tanya believed in Ted’s idea and supported his venture.

“There was just something very compelling about it,” said Tanya. “I do remember asking a number of times, ‘Are you sure?’ I never doubted his knowledge or ability, but he was doing something that had never been done.”

savings and our 401k. I thought I was going to have a heart attack. I stopped looking and went out and got a coffee.

I found the diamond when I got back, which I honestly felt was a miracle,” said Ted.

Headquarters: Spare Bedroom Ted set up headquarters in the spare bedroom of their house. He travelled all over the world to find diamonds.

He traveled to New York, Belgium and Israel. He worked with diamond cutters to learn how to lase diamonds. He made arrangements to get diamond “scraps” to work with and learn from.

“It was all trial and error. You start going down a path, and you think you are going in the right direction, and then you go another way. Now you know two ways,” Ted said. “I believe you are not a failure until you have accepted defeat as reality, and I just wasn’t going to do that.”

Believe in Miracles Ted recalled a harrowing moment when he was working with a diamond and it shot out of his tweezers and was lost in their shag carpeting. The diamond represented a month of work.

“I spent five hours looking for that diamond. We had gone through all of our www.thurstonchamber.com

Ted and Tanya Jernigan

“That diamond didn’t work, but … the knowledge that I gained by drilling and processing the diamond was saved.

“I have not failed. I’ve just found 10,000 ways that won’t work.”

Thomas Edison Several months later, we produced the first successful product.”

Thomas Edison said, “I have not failed.

I’ve just found 10,000 ways that won’t work.” That idea kept Ted going. After five years of 10-hour days, seven-day weeks, and failure after failure, he finally developed the diamond orifice he knew

would solve the problem and change the industry. Back then, it took him eight hours to complete just one manufacturing process in the production of a complete nozzle. Now, his shop can produce that same process in 30 seconds.

Through the early years, the company dealt with the challenges all startups face.

“Cash flow was tough because at the same time Ted was doing R&D we had to buy equipment,” said Tanya. “It was a huge outlay to purchase equipment and materials while at the same time ramping up product to support R&D.” Ted and Tanya eventually moved the business out of the spare bedroom and into one bay of the three-car garage. They hired their first employee and expanded to all three bays Continued on page 16

Thurston County Chamber VOICE  March/April 2015 15

of the garage. There was so much work to do that Tanya quit her job and joined Ted. Even their two young daughters, Kendra and Jessica, helped where they could.

Then they moved into their own space.

Vertical Integration “Next, we started developing our own methods of tooling. We figured out that we had to be vertically integrated,� said Ted. “We have a perpetual desire to gain

a higher and higher level of technological innovation. Everyone out there wants to compete. You have to stay ahead of them.�

Once Ted had a product to ship, he began to focus on hiring great people and providing an outstanding working environment — going so far as to develop better tweezers, uniquely shaped to fit each employee’s grip. Then, he took the 32-step process that it took to develop his

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product and cut it down to half of that.

Today, dti™ is number one in their field and employs 45 people. Ted is the CEO, Tanya is the CFO, Jessica Van Hatcher is director of marketing and business development, and Kendra Miranda runs their foundation. Ted’s focus on vertical integration and continuous innovation launched several new arms of the business, including dtiCORE™, representing the diamond orifice division and dti EXACT™, the full-service precision machining division.

The spare bedroom with shag carpeting has been replaced by a three building facility and diamond division with pristine white floors and white tables. If someone were to drop a diamond or a tray of diamonds, you can bet they’d be able to find every single one.

In 2006, Ted and Tanya sold off the waterjet pump portion of the business, H2O Jet, and continued running the diamond nozzle/orifice portion of the business as dti™ and the company continued to grow.

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Their biggest challenge today is finding the workforce to run their precision CNC machines, which requires both programming knowledge and an understanding of the machining and tooling process. In 1999, they started working with South Puget Sound Community College to establish a machining certificate program. They hired the program’s first two graduates. “We have what I believe are some of the best people in the world working for us. They are the reason we are successful,� said Tanya. “Now, our focus is on involving our employees in the community.

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16 • March/April 2015 ď Źď€ Thurston County Chamber VOICE

“We volunteer with the Boys & Girls Club, Washington Engage and Care Net and other local foundations. As a company we work with our suppliers to

www.thurstonchamber.com

Photos: The Jernigan Foundation established a boarding school in rural South Africa in 2010. The school was built from a broken down barn and then turned into several buildings.

make sure the products we use are slave-free.

In 2006, we founded the Jernigan Foundation with a mission to serve widows, orphans and others in need. We’ve established a boarding school in rural South Africa where there are huge AIDS issues. We also partner with the Tronie Foundation, an Olympia-based group whose mission is to end human trafficking.”

“We are turning more and more to wanting to make a difference not only in our community, but in our world. I don’t know what it means yet, but that is what we want to find out.”

-Tanya Jernigan

Exit Strategy Announced Ted and Tanya announced in January they will initiate plans to exit the company over the next few years. They will maintain ownership of the business, but they will focus their energy toward work at the Foundation.

Meanwhile, dti™ is stronger than ever with the worldwide launch of a brand new orifice product, tetraCORE™, and with the further ramping up of their machining division to support the growing needs of current customers and local industry.

“We are turning more and more to wanting to make a difference not only in our community, but in our world,” said Tanya. “I don’t know what it means yet, but that is what we want to find out.” The Jernigans will, no doubt, make incredible strides in their work through the Foundation because they’ll follow their own advice to innovate, believe in miracles and never give up. ● www.thurstonchamber.com

Bring Clarity, Alignment and Action to What You Do. Let’s Get Started Today.

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Thurston County Chamber VOICE  March/April 2015 17

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Learn How Your Business Can Support Thurston County Students

M

ath for Life, in partnership with local school districts, promotes real-life math skills. Local businesses sponsor the program. Students from area school districts visit participating businesses to solve practical math problems. After visiting several businesses and answering math problems, students are eligible for prizes.

“Businesses are looking for ways to engage with kids – as well as the community – and Math for Life allows them to do that,” said David Schaffert. “Parents love the program because it reinforces what their children learn in school by providing real-life examples.”

This year, the Chamber is capping the number of businesses participating at 100, so businesses need to sign up soon.

“This is a chance to get involved in the community, support education and our children, and it’s an unbelievable advertising opportunity,” said Dirk Farrar, a financial advisor at Edward Jones, a Math for Life participant. “We provide a venue for as many as 700 kids to see the importance of math in daily life. We also enjoy the face to face interaction with the kids. They ask

questions that help them realize that math is something they’ll use for the rest of their lives,” he said.

Here is how the program works: Students receive a Math for Life map, which they take to different Chamber member businesses who’ve signed up for the program. Businesses interact with students as they ask grade-level math questions provided to the business. Students get their map stamped at each location. When they submit their completed map to their teacher, they qualify for a chance to win great prizes. If you are interested in becoming a Math for Life business or a participant or sponsor at Find Your Future, please contact the Chamber at 360.357.3362 or visit www.thurstonchamber.com ●

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Thurston County Chamber VOICE  March/April 2015 19

1946 PROUDLY SERVING

THURSTON COUNTY

SINCE 1922

2014

Simplify your business needs with TwinStar’s enhanced Voyager business checking.

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1.800.258.3115 www.thurstonchamber.com

The Chamber Welcomes New Members from December and January 420 Carpenter

Chad Champagne 360 402-6368 www.420carpenter.com

Retail A & E Relocation Services

Jacob Alden 360 491-2370 www.aerelocations.com

Movers A & W Northwest Cleaning

Winston Cordis 360 528-1693 www.awnorthwestcleaning. com Carpet & Upholstery Cleaners Ameriprise Financial Services, Inc. - Thomas Valena

Thomas Valena 253 761-3106 www.ameripriseadvisors.com/ thomas.e.valena Financial Planning Consultants Balanced Counseling & Hypnosis

Michael Brouillette 360 352-9443 www.balancedchc.com

Counselors - Marriage, Family, Child & Individuals

Best Western Plus Lacey Inn & Suites

Tonia Jones 360 456-5655 www.bestwestern.com

Hotels & Accommodations Connie’s Business Services

Connie Harn 360 915-7718 www.connies-business-services. com Bookkeeping Service DAV Disabled American Veterans Chapter 41

Lance Caver 360 459-7400

Non-Profit Organizations FirstLight HomeCare South Sound

Sarah Lane 360 890-2820 www.southsound. firstlighthomecare.com

Home Health Services LARC at Olympia

Lara Clark 360 790-5943

Apartments LC Editing Services

Liz Shine 360 918-2897 www.lcediting.wordpress.com

Publication Services

Lola Lifestyle Boutique

Lauren Rodriguez 360 539-7743 www.shopatlola.com

Retail Morgan Transfer

Jacob Alden 360 493-1300 www.morgantransfer.com

Movers NW Media Company

Jason Hearn 360 438-6004 www.nwmediacompany.com

Marketing Programs & Services Oly Underground

Pat Boardman 360 352-7343 www.olyunderground.com

Restaurants Olympic Topical Pain Relief, Inc.

Jeff Hunter 585 739-1264 www.prxweb.com

Medical Equipment & Supplies Prime Lending

Jeff Bohl 360 338-7993 www.lo/primelending.com/ jbohl Mortgages & Contracts

Russell & Bode Family Dentistry

Belinda Kuehl 360 742-3912 www.russellandbodentistry. com

Dentists & Orthodontists Savvy Senior Strategies

Tammie Rutledge 360 791-1570 www.savvyseniorstrategies.com Senior Citizens’ Services Seacret Direct - Maia Dealan-de

Maia Dealan-de 360 481-4844 www.seacretdirect.com/ maiadealan-de

Skin Care Sound Transactions

Mac McLaughlin 360 436-6367 www.soundtransactions.com

Credit Card Plans & Equipment Tranquility Dental Wellness Center

Tawni Allen 360 529-9968 www.tranquilitydentalwellness. com Dentists & Orthodontists WarrenMicro

Jacob Warren 360 464-2117 www.warrenmicro.com

Computers - Software & Services Photo above: On Saturday, January 10, Oly Underground celebrated their Grand Opening with a Ribbon Cutting. www.thurstonchamber.com

Thurston County Chamber VOICE  March/April 2015 21

22 • March/April 2015 Thurston County Chamber VOICE

Www.thurstonchamber.com

Chamber & Community Honors Businesses that Practice Sustainability

T

hurston County businesses are going green and will receive recognition for their efforts on Wednesday, April 8 at the Thurston County Chamber Forum. The Thurston Green Designation program recognizes businesses that practice environmental sustainability in the following areas: Waste reduction and recycling, energy efficiency, buying and selling green, water conservation, transportation and commute trip reduction or green products and services.

Now in its eighth year, the Thurston Green Business program has become one of the Chamber’s most popular programs, and for good reason -- businesses that take steps to be green save money while protecting and preserving resources. Saving energy and water, while reducing waste, are good steps that benefit our environment. The savings that result from conservation boost the bottom-line.

Any business within Thurston County may apply for a FREE designation at www.thurstongreenbusiness.com Next, visit www.thurstonchamber.com and register for the Thurston Green Forum. At this event, all Thurston Green businesses will receive recognition and three businesses in the small, medium and large categories will be honored for their sustainability efforts.

Forum includes lunch and is $35 for general admission, $25 for prepaid (online) Chamber members and $30 for members at the door. Reservations are encouraged. Visit thurstonchamber.com or call 360.357.3362 today! ● Thurston Green Business is a partnership program between the Thurston County Chamber, the City of Lacey, the City of Olympia, the City of Tumwater and Thurston County.

Our committee includes these partners as well as a number of sponsors, including Puget Sound Energy, LOTT Alliance, Intercity Transit, LeMay, Inc., and Olympia Federal Savings. The program is also supported by the Northwest EcoBuilding Guild, Thurston Energy and Thurston Climate Action Team (TCAT).

www.thurstonchamber.com

Thurston County Chamber VOICE  March/April 2015 23

Project Management Essentials in the Evening Learn how to execute projects on time, stay on budget, and work with maximum efϐiciency.

Next evening session runs April 7 - 21, 5:30 - 8:30 pm.

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24 • March/April 2015 Thurston County Chamber VOICE

www.thurstonchamber.com

Photos from left to right: Devlin Boats, Harbor Wholesale, Soloy Aviation Solutions

LTC Business and Economic Development Day – A Vision of Thurston County’s Economic Landscape

By Judy Reynolds

W

hat is community wealth? Why do communities need it, and how do they create it? What/who makes up the private sector? What are the roles of businesses, the public sector and other segments of our community in creating a thriving economy?

On January 21, Leadership Thurston County (LTC) contemplated the above questions as they learned about our community through presentations from business leaders and the visiting businesses to learn their challenges and successes. Michael Cade, Executive Director, Thurston Economic Development Council (EDC); John Powers, Executive Director, Kitsap Economic Development Alliance; and David Schaffert, President/CEO, Thurston County Chamber, started the day off with interesting slides and handouts providing regional data not typically available through media outlets. All were engaging speakers drawing us personally into the many facets of growth and development in a diverse and thriving community. Class members learned how we can support business in our communities, what barriers to economic development exist, and what factors attract new business.

www.thurstonchamber.com

As engaging as the speakers were, the morning was capped off with the Career Land Game, a board game developed by the EDC as a learning tool about regional economics. Class members were divided into clusters representing wood manufacturing, chemicals & plastics, IT & communications, life sciences and food manufacturing.

In the afternoon, we were fortunate to visit several businesses, dividing again into groups and boarding Intercity Transit vans. Many thanks to the following businesses who so willingly contributed their time and talent to showcase their histories, products, and processes: Harbor Wholesale, Earth Friendly Products, Soloy Aviation Solutions, Capitol City Press, Corrpak, Batdorf & Bronson and Devlin Boats.

Upcoming challenge days include Health and Human Services, Law and Justice, Arts and Culture and Environment.

For information about LTC, please call 360.357.8515. “Like” us on Facebook – Leadership Thurston County! ● Judy Reynolds is the Program Coordinator for Leadership Thurston County. Contact: 360.357.8515 or ltc@thurstonchamber.com

Thurston County Chamber VOICE  March/April 2015 25

Continued from page 6

So they started doing research. They travelled to Portland where there is one brew pub for every 20,000 citizens, while in Olympia there was only one in the city limits. “We realized that there was a lot of market share available, and that a brew pub was the safest route we could choose.

We just had to convince the banks that it was just a restaurant with a bunch of shiny tanks and a brewer on staff,� said Sara.

Sara and Nate said that what they did next was probably the reason they were able to open the restaurant—they found mentors. First, they reached out to Ron Nielsen. Ron is the Center Director of South Puget Sound Community College, Small Business Development Center (SBDC). “We knew how to put together a business plan, but we had no idea what banks wanted to see. We met with Ron every week for three months. It was an amazing process,� said Nate.

Crafting the Business Plan Next, with Ron’s help, Nate crafted

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a 90-page business plan, that he had professionally printed. “Later, one bank told us that it was the best business plan they had ever seen,� said Sara. Matt DeBord of Timberland Bank agreed to back the plan and they started moving The Three Magnets Brewing Co. name and logo was inspired by a publication written by Sir Ebenezer Howard in 1898. In the book is a diagram used to illustrate a perfect city. The third magnet represents the ideal utopian city that lives harmoniously with nature -- which Sara and Nate believe Olympia strives to be. The name "Three Magnets Brewing Co." is a constant reminder that what is best for the community should be top of mind and a guide as they make decisions. forward with the project. “Matt was incredible to work with and believed in us from the beginning,� said Nate.

Next, they sought out Pat Rants of The Rants Group to navigate the lease of the building on Franklin. “Because this building was a renovation, Pat gave us amazing advice throughout the process.

He is incredibly knowledgeable and easy to work with,� said Sara.

2014/15 SEASON

Northwest Brewery Advisors. “Hiring Marc was definitely the best investment we ever made. He held our hand through the whole process. He taught us how to make several important decisions. We saved money on equipment because he knew the manufactures. He helped us hire our brewers. We learned that you have to find people who know what they are doing and then let them do it,� said Nate. “Then it is our job to ensure that what they are doing fits with our vision and understanding of the market.�

Nate and Sara had the soft opening of Three Magnets in November, and the response has been outstanding. Nate said, “We opened during the holiday season, so business is completely sporadic. We are looking forward to the summer months when we’ll have outdoor seating and a lot more beer drinking going on. I can’t wait to get that first year under our belt so we’ll have some data to work with.�

When asked where they’ll be in ten years, Nate was quick to respond, “We don’t want to force growth. Instead, we want our growth to be organic. The craft beer industry is in huge growth mode, but it could be in a bubble. We want to be your community pub, and all the decisions we make will keep our community in mind.

That’s how we’ll stay relevant over the long run.�

Finally, they hired Marc Martin, a brewing consultant with Young Audiences New York’s Literature The Improvised Ain’t Misbehavin’ to LifeŽ Stage Presentation of March 28, 2015 Shakespeare Company The Glass Castle

March 12, 2015

by Jeannette Walls

March 29, 2015

Sponsored by: Northwest Public Radio

March 20, 2015

Sponsored by: 88.5 KPLU, Little Creek Casino, Panorama

Supported by: WESTAF, NEA

Continued on page 27

PLAN AHEAD FOR

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Seattle Men’s Chorus

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Legacy: Tyler’s Suite / I Am Harvey Milk

April 10, 2015

April 11, 2015

Sponsored by: Northwest Harley Davidson

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26 • March/April 2015 ď Źď€ Thurston County Chamber VOICE

provide your loved ones with true peace of mind by making your ďŹ nal plans now, before the time of need. *HW VWDUWHG ZLWK D )5(( FRS\ RI $ &HOHEUDWHG /LIH D ERRNOHW ILOOHG ZLWK LGHDV RQ SUH SODQQLQJ DV ZHOO DV D SHUVRQDO SODQQLQJ JXLGH &DOO WRGD\ Our gift to you

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The Reilly's Playbook how do you eat an elephant?

One bite at a time. Opening a business is overwhelming. Take it one step at a time. Find a way to get to know your business before diving in. Darby’s was our restaurant boot camp. We had a very big learning curve. Luckily, it was on a smaller scale.

RESEARCH Research, research, research. It took us more than six months to put our business plan together.

WORK-LIFE BALANCE Make sure it is what you really want to do. The reality is that you are going to work double the hours. It is not 8 to 5. It is very difficult, but at the same time it is one of the most rewarding things we've ever done. We get to make 400 people happy every day.

Hire experts & Find Mentors Don’t be afraid to hire a consultant. Let your community help you. We had so many people help us. The following people were invaluable: Ron Nielsen of South Puget Sound Community College’s Small Business Development Center. Matt DeBord of Timberland Bank, Pat Rants of The Rants Group and Marc Martin, a brewing consultant with Northwest Brewery Advisors.

On Criticism It is okay to take constructive criticism personally, as that means that you still have passion. When you do get constructive criticism, first identify if it is from your target demographic, and then look for common themes. But do not take nonconstructive criticism personally. It will only burn you out.

On vision Stick to your vision, but know when something isn’t working, and know when to be flexible. Do not take knee-jerk reactions to every fork in the road. Building clientele takes time, and trying to cater toward the lowest common denominator is usually not the best route. If you need to change your vision, do it slowly and methodically, and make sure that you still thoroughly understand your product. ●

www.thurstonchamber.com

Thurston County Chamber VOICE  Jan/Feb. 2013 27

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