March/April 2014 by St. Cloud Area Chamber of Commerce

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Visit centracare.com for a complete list.

CentraCare Health Plaza

Evenings & Weekends

Quality of Life

LyngbLomsten st. PauL

Lyngblomsten’s continuing care campus, located near Como Park Zoo, offers multiple levels of housing and healthcare services for seniors. the organization asked W. gohman Construction to transform the nursing home’s gift shop from a small, dark room that sold deli sandwiches and trinkets into a vibrant, lively cyber cafe where residents can sip on coffee, gather and visit with friends and family.

st. Joseph, mn • 320.363.7781 • info@wgohman.com

generaL ContraCting Design/buiLD ConstruCtion management

wgohman.com

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IN EVERY ISSUE 8

6 President’s Letter

Editor’s Note

Business Calendar

Top Hats

Network Central

CONTENTS

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MARCH/APRIL 2014

G R OW

Business Tools

24 Entrepreneurism Creating Structure

A successful business requires a solid foundation.

25 Doing Good 26 TechStrategies It’s Everywhere!

Leveraging social media in some fashion.

PROFIT

36 COVER STORY ROCK SOLID

Pat Alexander, Cold Spring Granite Company, remembers some dark days in the 1990s. Today the company is rebranding to Coldspring and expanding on its core competencies to ensure its future for another 115 years. N E T WO R K

Upfront 10

Book Review Leadership 101: The Psych 101 Series by Michael D. Mumford, PhD

10 News Reel

What’s happening and who’s moving.

Business news from around Central Minnesota.

11 People to Know 4

Your Voice In Government

You Can’t Get There from Here

Interstate 94 is one of ten projects to receive Corridor of Commerce funding… just not to St. Cloud.

16 Getting Going

Getting to Know You

Don’t be fooled. Who and what you know are the best ingredients for success.

The Trouble with Business

Engaging Employees

Business Central Magazine •• MARCH/APRIL 2014

27 Tech News 28 Management Tool Kit Employer Beware

PROFIT

This Issue Features

42 Passion

Entrepreneurs the world over are passionate about their craft.

46 Westward – Ho!

St. Cloud area businesses are feeling the ripples of an economic earthquake that is transforming life west of Bismarck.

50 Special Focus

Redesign On a Dime

Potential pitfalls in obtaining applicant’s criminal history

Economy Central presented by Falcon Bank

PROFIT

Special Section 50

Commercial Construction, Real Estate & Leasing

54 Business Spotlight

Larry and Jeannie DeGraaf, DeGraaf Financial

ONLY ONLINE •• Social Media Tools for Business

•• The Pros and Cons of Telecommuting

•• Boost Your Productivity

•• Make the Most of Employee Training

www.BusinessCentralMagazine.com

EmployEE HEaltH for a HEaltHiEr BusinEss

Worksite Health and Wellness Well-Being Seminars

Promote healthy living in your workplace. By improving the health of your employees, you’ll increase productivity and reduce overall medical benefit costs.

Cal M a r l d u ring ch a n d o r A p ril r e ce Wel two -for- ive l- Be ing S one e min A sk a r s! us ab

HealthPartners Certified Wellness Coaches will conduct educational seminars at your location. Choose from a variety of topics to raise awareness about important health issues and encourage overall health and well being.

Seminar topics focus on: • Healthy eating and nutrition management • Stress awareness and reduction • Physical activity and exercise

BEnEfits includE •

Help reduce overall corporate medical expenditures

•

Build health awareness Give employees the tools for healthy living

•

to inquirE aBout wEll-BEing topics and for morE information, contact Greg Bockrath

320-203-2405 worksitehealth@hpcmc.com | hpcmc.com

These services are available to all companies and can be customized for your needs. You don’t need to have HealthPartners insurance as part of your medical benefits plan.

d eta

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PRESIDENT’S LETTER NETWORK Main Phone 320-251-2940 Automated Reservation Line 320-251-2940, ext. 126 Program Hotline 320-251-2940, ext. 125 email: information@StCloudAreaChamber.com www.StCloudAreaChamber.com

Sweet Sixteen! I can tell you with certainty that sixteen years from now our Chamber will be under completely new management and volunteer leadership Business After Hours, October 1998: Chamber President Teresa Bohnen (L) and Board Chair, Sandy Neutzling, Jennings Insurance.

recently celebrated my Sweet Sixteen! Sixteen years of service for the members and volunteers of the St. Cloud Area Chamber of Commerce. Somehow, LinkedIn knew this, reported it, and I got oodles of congratulatory messages out of cyberspace. I started with our Chamber in 1998. My daughter was 4 years old. As I watch the woman of 20 who occasionally comes home from college to do laundry, I marvel at the speed with which time passes. How much water has passed under your bridge in sixteen years? Consider this: President Clinton had a really rotten 1998. It was the year he denied, and then admitted, to having an inappropriate relationship with intern Monica Lewinsky.

Soccer player David Beckham and Victoria “Posh Spice” Adams got engaged. They have a whole bunch of kids now. NHL’s Minnesota franchise selected the nickname “Wild.” Washington National Airport was renamed Ronald Reagan National Airport. The last episode of Seinfeld aired on NBC, with 30-second commercials selling for $2 million.

Two students at Stanford University, Larry Page and Sergey Brin, launched Google. (Thanks to them for making it easy to find all this nifty information.) I was at a chamber executive conference recently where we were asked to consider what our organizations will look like in ten years. When I considered ours, it was more than a little scary. We will be facing the loss of more than 170 years of staff experience. At least seven of our nine staff members will be retired or close to it. That’s a lot of transition. Where will the new staff come from? Many of our current, active volunteers will also be retired, or thinking about it. Who will replace them? I wonder where volunteer hours will fit in for our future leaders. What WILL our Chamber look like? Transition issues are difficult to face and change is imminent. I intend to open the discussion with our Chamber’s Executive Committee this year to begin developing ideas and plans to address the changes that lie ahead. If 10 years brings potential changes, I can tell you with certainty that sixteen years from now our Chamber will be under completely new management and volunteer leadership. If we don’t start preparing now to respond to the challenge, we are not being responsible to our future business leaders. Have you ever noticed, life is like a roll of toilet paper? The closer you get to the end, the faster it goes.

Teresa Bohnen President 6

Business Central Magazine •• MARCH/APRIL 2014

ST. CLOUD AREA CHAMBER OF COMMERCE STAFF President | Teresa Bohnen, ext. 104 Vice President | Gail Ivers, ext. 109 Director of Administration Judy Zetterlund, ext. 106 Special Events Coordinator Virginia Kroll, ext. 105 Communications & Workforce Development Coordinator Whitney Bina, ext.130 Membership Sales Specialist Jaime Buley, ext. 134 Administrative Assistant Vicki Lenneman, ext. 122 Administrative Assistant Cindy Swarthout , ext. 100 Administrative Assistant Sharon Henry, ext. 124 CONVENTION & VISITORS BUREAU STAFF Main Phone: 320-251-4170 Executive Director Julie Lunning, ext. 111 Director of Convention Sales Lori Cates, ext. 113 Director of Sales & Marketing Judy Okerstrom, ext. 112 Director of Sports & Special Events Kelly Sayre, ext. 128 Director of Visitor Services Jean Robbins , ext. 129 Sales & Marketing Coordinator Nikki Fisher, ext. 110 2013-14 BOARD MEMBERS Jim Beck Minnesota School of Business Gary Berg G.L. Berg Entertainment, Performing Artists & Speakers Jason Bernick Bernick’s - Beverages & Vending Craig Broman St. Cloud Hospital/CentraCare Health, Past Board Chair Neil Franz Franz Hultgren Evenson, P.A. Jayne Greeney Schill St. Cloud Area School District #742 Jim Gruenke Mark J. Traut Wells John Herges Falcon National Bank, Board Chair Diane Mendel Playhouse Child Care Kris Nelson Custom Accents, Inc., Board Vice Chair Mark Osendorf Xcel Energy Dr. Earl Potter, III St. Cloud State University Roger Schleper Premier Real Estate Services Jodi Speicher The Good Shepherd Community Bea Winkler Pine Cone Pet Hospital Chriss Wohlleber Le St. Germain Suite Hotel

EDITOR’S NOTE NETWORK

Buon Cibo

Clockwise from left: •• Editor Gail Ivers at the Marangoni chocolate factory. •• Dinner! Meat, cheese and toasty bread. •• The Macerata Chamber is working to promote wines of the region. •• Two of my favorite things: Business Central and gelato. BONUS: Enjoying both in Italy! •• Marangoni Chocolates

he Italians are good at many things. Can you say Ferrari? Or Gucci? How about good food: buon cibo? On our recent trip to Italy Chamber President Teresa Bohnen and I (see the story on page 42) made a special effort to support the local food economy. We had more than one meal made up of fresh bread and Italian cheeses: Gorgonzola, Pecorino, Fontina, Parmigiano-Reggiano, Provolone, Asiago…. And where there’s cheese, there should be wine. I’ve never been a big fan of Italian wine. However, I rose to the occasion. We toured one winery where the locals could stop by with their jugs every week for a self-serve refill, simply leaving their money on the counter when they left. Of course, where there’s wine, there should be chocolate. I’ve had several people comment that they don’t think of chocolate and Italy in the same sentence. Don’t say that to Alfredo Marangoni and his sister who own Marangoni Chocolates.

Business Central Magazine •• MARCH/APRIL 2013

These handmade gems are a unique combination of various chocolates blended together and poured over dried and rum-soaked fruit. Teresa almost tackled Alfredo when he brought out a basket of gaily wrapped chocolates – each one done by hand. And if there’s chocolate, there has to be gelato. Need I say more? Pasta is a whole new experience in Italy. They have mastered the technique of al dente. In the U.S. that means “crunchy.” In Italy it means “done to perfection.” In the U.S., spaghetti sauce means white or red. In Italy it means olive oil, pesto, chopped tomatoes, seafood, peppers, and garlic. All fresh, and preferably organic. On a tour of Aldo Pasta we learned that the company used to have trouble with repetitive motion injuries and excessive breakage of the pasta as it dried. Owner Luigi Donne went to work in his garage modifying a machine to eliminate both problems. The Italians are good at growing entrepreneurs, too.

Pat Alexander, Coldspring (see the story on page 36) learned this first-hand. He went to Italy early in his career to learn about their granite industry. At the time his company built all their own granite equipment. The Italians purchased granite equipment from specialty companies and as a result their manufacturing process was significantly faster than what Cold Spring Granite was doing. One of Pat’s first steps as company president was to introduce new automation. There are many other things the Italians are good at. Art. Opera. And we saw some pretty impressive technology. But I’m sticking with the gelato. Until next issue,

Gail Ivers

Vice President

Editor

Publisher Teresa Bohnen

Tracy Knofla High Impact Training

Managing Editor Gail Ivers

Betsey Lund Franz Hultgren Evenson, P.A.

Associate Editor Dawn Zimmerman CONTRIBUTING WRITERS Lori Athmann Jovanovich, Kadlec & Athmann, PLLP Whitney Bina St. Cloud Area Chamber of Commerce Teresa Bohnen St. Cloud Area Chamber of Commerce Sharon Henry St. Cloud Area Chamber of Commerce

Lawrence Schumacher Wordbender Communications, LLC Greg Vandal Vox Liberi Dawn Zimmerman The Write Advantage ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media

ART Design & Production Yola Hartmann, Hazel Tree Media

110 Sixth Avenue South

Sarah Sucansky

P.O. Box 487, St. Cloud, MN 56302-0487

Cover Photo Joel Butkowski, BDI Photography

www.BusinessCentralMagazine.com

ACCOUNTING Judy Zetterlund

Wendy Hendricks, (320) 656-3808, 110 S. 6th Ave.,

WEBSITE Vicki Lenneman

Editorial suggestions can be made in writing to:

CORPORATE SPONSOR

56302-0487. Submission of materials does not guarantee

Phone (320) 251-2940 • Fax (320) 251-0081

For advertising information contact P.O. Box 487, St. Cloud, MN 56302-0487.

Editor, Business Central, P.O. Box 487, St. Cloud, MN publication. Unsolicited materials will not be returned unless accompanied by a stamped, self-addressed envelope. © Copyright 2014 Business Central LLC

Dr. Fred E. Hill St. Cloud State University

Business Central is published six times a year

Gail Ivers St. Cloud Area Chamber of Commerce

110 Sixth Avenue South; P.O. Box 487, St. Cloud, MN

by the St. Cloud Area Chamber of Commerce, 56302-0487 • Phone (320) 251-2940 • Fax (320) 251-0081 Subscription rate: $18 for 1 year.

M A R C H / A P R I L 2 0 1 4 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

Book Review

People to Know

Your Voice in Government

It Happened When?

Business Calendar

Getting Going

The Trouble With Business

UPFRONT

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GROW NETWORK PROFIT

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NEWS & PEOPLE THAT MAKE UP THE CHAMBER NETWORK

N E WS R E E L

BOOK REVIEW

Growing Leaders

Good leaders often exhibit similar traits, skills and behaviors. Reviewed by Fred E. Hill

Leadership 101: The Psych 101 Series by Michael D. Mumford, PhD • Springer Publishing Company. LLC, New York • 2010 ISBN 978-0-8261-1134-0

n Leadership 101 author Michael Mumford and his colleagues address an abundance of leadership questions, such as “Are leaders born or made?” This work presents in-depth discussions of common assumptions and misconceptions surrounding leadership. “Examining the subject from both psychological and business perspectives, the book discusses what traits, skills, and behavioral patterns leaders possess; how good and bad leaders think; what makes an outstanding leader;

and how leadership research is conducted.” Mumford’s book consists of eight chapters. The chapter that interests me most is Chapter 4: Leader Traits, Skills, and Behaviors. “When most people think of what makes a good leader, they usually think in terms of what a person is like (traits), what they are good at (skills), or what they do (behaviors).” We are often able to observe visible leadership aspects - tending to filter our observations through what our ideas of leadership are. Our ideas may not be the best indicators. On-going research, observations, and conversations could shed additional perspectives to assist in increasing leadership abilities. Chapter 4 is broken down in the following manner: • Three Cognitive Traits: intelligence, wisdom, and expertise; • Five Personality Traits: energy level, stress tolerance, selfconfidence, locus of control, and emotional maturity; • Four Interpersonal Traits: Machiavellianism,

Business Central Magazine •• MARCH/APRIL 2014

authoritarianism, integrity, and motivation. In addition, there are six skills – decision making, problem solving, planning, emotional intelligence, social intelligence, and learning ability and eight behaviors – consideration, initiating structure, participative leadership, change-oriented behavior, role modeling, support, championing, and feedback. Some of the traits and skills overlap – such as intelligence being necessary for wisdom. The overlap highlights the complexity of leadership and what is necessary for successful leadership. This review may make the book sound more complex than it really is. It is based on solid and extensive research. Organizations can use traits and skills research to develop and hire their employees, and individuals can use this research to develop their own skills as a leader. BC Dr. Fred E. Hill is an emeritus professor of Learning Resources Services, at St. Cloud State University.

Nextera Communications receives award Nextera Communications received an Aggie 100 Award for the second year in a row. This award honors the world’s fastest-growing companies that are owned and operated by former Texas A&M students. Greg Arvig, CEO and founder of Nextera Communications, received the award.

Arvig announces new hire Kathleen Court-Stanger joined Arvig as a business solutions consultant Court- providing Stanger analyses and recommendations for new and existing business telephone systems and equipment.

CSB, SJU recognized for study abroad programs The College of Saint Benedict (CSB) and Saint John’s University (SJU) ranked number two nationally among baccalaureate institutions with students who participate in mid-length study abroad programs that last one semester. Open Doors 2013, the annual report on international education published by the Institute of International Education, provides the ranking.

PEOPLE TO KNOW

Get to know them Diane Ohmann St. Cloud Area School District #742 (320) 529-6500 ext. 6204 diane.ohmann@isd742.org Chair, Top Hatters Club The Top Hatters are the Chamber’s ambassadors, welcoming new members, congratulating members who have expanded or relocated, and serving as greeters and hosts at Chamber events.

Eric Alf The Ad Company (320) 774-7920 eric.alf11@gmail.com Chair, Chamber Connection Chamber Connection is the premier networking event for businesses in Central Minnesota. Hosted by a different Chamber member every Friday morning, Chamber Connection attracts 120 -150 people each week to network and share information about their businesses, all for the price of $1 at the door.

hop, skip,

People of interest within the St. Cloud Area Chamber of Commerce community.

Dan Anderson Miller, Welle, Heiser & Co., Ltd. (320) 253-9505 danderson@mwhco.com Chair, Chamber Open The Chamber Open is an annual networking event for all Chamber members. Volunteers organize the day’s activities, sell sponsorships and help the day of the Open. This year the Chamber Open is Monday, August 11 at the St. Cloud Country Club.

and a

Sheri Moran Gabriel Media (320) 251-1780 sheri@gabrielmedia.info Chair, VIP Committee, St. Cloud Area Chamber of Commerce The VIP (Value Information Promotion) Retention Committee calls on Chamber members to share information about coming events, inquire about membership satisfaction, and encourage businesses to take full advantage of their membership.

Melanie Tank GrandStay Residential Suites Hotels (320) 251-5400 stcloud@grandstay.net Chair, St. Cloud Area Chamber’s Convention & Visitors Bureau Advisory Board The Chamber’s Convention & Visitors Bureau (CVB) is dedicated to promoting the St. Cloud area as a premier visitor destination and to encouraging community improvements that benefit residents and increase the economic impact of visitors. Members of the Advisory Board approve budgets, marketing campaigns, and recommend policy positions.

jump

When you’re hurt, we’re right here. You don’t have to go to great lengths for orthopedic care. Our board certified orthopedic specialists are closer than you think.

StCloudOrthopedics.com 320.259.4100 SCO Business Central-JUMP.indd 1

6/3/13 12:03 PM

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UPFRONT NETWORK

YOUR VOICE IN GOVERNMENT

N E WS R E E L Fisk joins Quinlivan & Hughes; Moehrle elected shareholder Julie Fisk joined Quinlivan & Hughes’ Employment and Business Fisk Transaction Practice earlier this year. Fisk graduated from the University of Minnesota Law School and was named a Rising Star Attorney by Minnesota’s Super Lawyers in 2012 and 2013. Laura A. Moehrle was elected shareholder of the firm on January 1. She practices Moehrle primarily in the area of insurance defense litigation and is a frequent presenter on issues related to automobile and professional liability.

Trosdahl

Cross

Sperling

Boser Construction adds employees The following people joined Boser Construction: Ryan Cross, design build associate; Ryan Trosdahl, project manager; and Joshua Sperling, project manager. Boser Construction specializes in commercial, medical and institutional construction.

Gaslight Creative hires, promotes Erin Hermansen joined Gaslight Hermansen Creative as account coordinator. Hermansen recently graduated from St. Cloud State University and Imdieke previously worked as a communications intern at the agency. Amy Imdieke was promoted to senior graphic designer. Imdieke has more than seven years of experience in graphic design and illustration.

You Can’t Get There from Here Interstate 94 is one of ten projects to receive Corridor of Commerce funding… just not to St. Cloud. By Teresa Bohnen, Chamber president

he debate about expanding Interstate Highway 94 is ongoing and frustrating on many levels. The stretch of asphalt that connects St. Cloud to the Twin Cities is one of the most critical corridors in the state, and yet we can’t seem to find funding to expand lanes, maintain pavement and widen bridges. The 2013 Minnesota Legislature created the Corridors of Commerce program by authorizing the sale of up to $300 million in new bonds for the construction, reconstruction,

and improvement of trunk highways. The legislation establishes two major goals: •• provide additional highway capacity on segments where there are currently bottlenecks in the system •• improve the movement of freight and reduce barriers to commerce. I-94 is one of ten projects chosen to receive Corridor of Commerce funding. An additional lane will be constructed on a 2-mile stretch from MN 101 (St. Michael exit) to MN 241 beginning in the fall of 2014.

Furthermore, Highway 610 is scheduled to be reconstructed and turned into freeway from County Road 8 to I-94. This will relieve traffic at the Fish Lake Interchange (at Maple Grove where I-94 splits into 494/694). The chart below shows traffic volumes in 2000, contrasted to 2012 at various intersections from St. Cloud to Maple Grove. With traffic scheduled to continuously increase over time, the scheduled I-94 expansion is critical to efficiently move goods and people in the future. The two seasons of Minnesota – winter and road construction – are about to become even more challenging in the short run, with promises of relief in the future...but not all the way to St. Cloud. BC Teresa Bohnen is president of the St. Cloud Area Chamber of Commerce. You can reach her with questions or comments at 320 565-3804 or tbohnen@ stcloudareachamber.com.

MILESTONE

Jose receives national award

Brian Jose, executive director of Fine Arts Programming at the College of Saint Benedict and Saint John’s University, received the annual North American Performing Arts Managers and Agents (NAPAMA) Award for Excellence in Presenting the Performing Arts. The NAPAMA Award is given each year to a distinguished arts presenter and is based on proven dedication to the future of presenting the performing arts; a high level of professionalism and ethical behavior; and unwavering respect for colleagues in the field. Jose has been the executive director of Fine Arts Programming at CSB and SJU since 2008. He has more than 27 years of experience as an arts administrator.

Business Central Magazine •• MARCH/APRIL 2014

IT HAPPENED WHEN?

DECEMBER 1988 – JANUARY 1989

Lunch with Leaders

n 1988 and 1989, the St. Cloud Area Chamber of Commerce’s Legislative Affairs Division sponsored the “Lunch with Leaders” series at the Sunwood Inn. Over the course of a couple months, several executive leaders came to St. Cloud to participate in the program. Lunch with Leaders focused on timely topics and concerns of the Chamber and Minnesota. The event provided St. Cloud Area

Chamber members with an opportunity to meet with Minnesota government leaders, ask questions, voice opinions and understand the latest issues at the state Capitol. The sessions featured the following speakers: •• Mike Hatch, commissioner, Minnesota Department of Commerce •• Ken Peterson, commissioner, Minnesota Department of Labor and Industry •• Richard Bohr, executive director of the Minnesota Trade Office

•• Roger Moe, Senate Majority Leader •• Tom Triplett, commissioner, Minnesota Department of Finance

Left: Tom Triplett, commissioner, Minnesota Department of Finance Above: Ken Peterson, commissioner, Minnesota Department of Labor and Industry

s your health plan working as hard as you do to lower costs? s your plan partnering with the region’s finest care providers – like St. Cloud Medical Group – to improve care? f not, let the region’s only certified ACO health network help you find the right plan for your business.

www.IntegrityHealthNetwork.com (218) 722-8802 M A R C H / A P R I L 2 0 1 4 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

UPFRONT NETWORK

N E WS R E E L SBETC receives grant Stearns-Benton Employment and Training Council (SBETC) received an $80,000 grant to provide at-risk youth with workforce readiness training and summer work experience. This includes goal setting, financial literacy training, labor market information and workplace tours. The grant was awarded by the Minnesota Department of Employment and Economic Development.

Marco promotes, acquires Marco, Inc. promoted Mike Welling Welling to managed service technical manager. Welling has over 16 years of experience in the IT industry and has an electronics degree from St. Cloud Technical College. He has been with Marco since 1997. Marco acquired TelePro Communications, Inc., a carrier services company based in the Twin Cities. The acquisition helps Marco expand the technology services they provide to their clients. TelePro operates as a division of Marco and retains the TelePro name.

Lindeman joins Rinke Noonan Matthew Lindeman joined Rinke Noonan Lindeman as an attorney. Lindeman is a St. John’s University graduate with a law degree from Hamline University School of Law. He practices in the areas of collections and general civil litigation.

Gau recognized Jeff Gau, CEO of Marco, Inc. was named a Good Leader finalist in the Gau 2014 Community Impact Awards by Minnesota Business Magazine. The award recognizes business people whose excellence in character and leadership has made a positive impact on the communities they serve. Insert photo: <Jeff Gau>

BUSINESS CALENDAR March/April 2014 •• Visit events.StCloudAreaChamber.com for a detailed calendar.

Can’t-miss opportunities to influence, promote and learn March 19 & April 16

Waite Park Chamber

St. Cloud Evening at the Capital An annual event to meet the state legislators and introduce them to the organization you represent. Join us for a relaxed and informal evening in our state capital and help our legislators understand the needs of Central Minnesota. Transportation is available. Registration is required: $20 for Chamber members; $30 for the general public. MARCH 31: Best Western Kelly Inn St. Paul 161 St. Anthony Ave., St. Paul. • 5-7 p.m.

For businesses interested in Waite Park issues. Lunch is provided by the host when you register at least two days in advance. 11:30 a.m. – 1 p.m. MARCH 19: Hosted by Martin Marietta Aggregates. APRIL 16: Hosted by Forsberg Investments & Insurance at the Moose Family Center, 1300 3rd St. N, Waite Park.

March 14 & April 11 For information on these or other business events, call 320-251-2940. * The chamber office is located at 110 6th Ave. S.

March 5 & April 2

Lunchtime Learning Educational networking events that give busy professionals a chance to stay on the cutting edge. Meets the first Wednesday of the month, noon-1 p.m. at the Chamber office*. Registration is required: $15 for Chamber members, $22 for the general public. MARCH 5: Sponsored by Pro Staff with Sue Kadlec, Jovanovich, Kadlec & Athmann, PLLP, presenting “Records Retention Schedule? What the Heck is That?” APRIL 2: Sponsored by Bernick’s – Beverages & Vending, with Larry Logeman, Executive Express, presenting “Dealing with Difficult Customers.”

March 13, April 8 & 24

Business After Hours A complimentary open house for

Business Central Magazine •• MARCH/APRIL 2014

Chamber members and guests. Bring lots of business cards and prepare to grow your network! 4:30 - 6:30 p.m. MARCH 13: hosted by CentraCare Health – BLEND (Better Living Exercise & Nutrition Daily), 1600 County Rd. 134, St. Cloud. APRIL 8: Business After Hours EXTRA! presented by Grand Casino and co-sponsored by over 60 businesses, at the Best WesternKelly Inn, 100 4th Ave. S, St. Cloud. APRIL 24: Waite Park Chamber After Hours hosted at La Casita, 314 Division St., Waite Park.

March 14 & April 11

Government Affairs A discussion of local government issues on the second Friday of the month, 7:30 - 9 a.m. at the Chamber office* MARCH 14: Education APRIL 11: Energy Update

Sauk Rapids Chamber For businesses interested in Sauk Rapids issues. Lunch is provided by the host when you register at least two days in advance. 11:30 a.m. - 1 p.m. MARCH 27: Hosted by Indigo Signworks, 2885 Quail Rd. NE, Sauk Rapids. APRIL 24: Non-Profit Member Showcase featuring eight Chamber members. This meeting is at the Sauk Rapids Government Center, 115 2nd Ave. N, Sauk Rapids.

March 28

DAYTA University Sponsored by the St. Cloud Area Chamber of Commerce and DAYTA Marketing, DAYTA U offers a full day of courses for social media beginners, gurus and anyone in between. Cost is $190. Chamber members receive a 10% discount. Registration is required. 9:15 a.m. - 4:50 p.m. MARCH 2: Regency Plaza, 912 W. St. Germain St., St. Cloud

POINT OF VIEW

Business Central asked readers:

If you could go back in time, what advice would you give yourself before starting your career?”

“ “

Explore different career avenues.” Mary Lynne Goenner James M. Gammell Ushers

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MARK YOUR CALENDARS ST. CLOUD GOES TO WASHINGTON, D.C.

Chamber staff and volunteers head to Washington to meet with the region’s Congressional delegation April 28-30. For details contact Teresa Bohnen at 320-656-3804.

gaslightcreative.com

branding | websites | advertising

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UPFRONT NETWORK

N E WS R E E L

MILESTONES

Community Foundation receives $18.2 million in gifts

Mathew Hall Lumber recognized Mathew Hall Lumber was recently recognized in two national industry publications. The company’s fifth generation owners, Loren, John and Dan Hall, were featured on the cover of LBM Journal, a publication for suppliers in the lumber and building industry. ProSales Magazine also recognized Mathew Hall Lumber’s ingenuity with the 2013 Excellence Award for Marketing for its “Back to the Builder” campaign.

Gerber joins Heartland Glass Garrity Gerber joined Heartland Glass as Gerber estimator and sales representative. Gerber has eight years of experience in both glass and parts manufacturing industries. Heartland Glass is a full service glass company specializing in shower doors, storefronts, entrances, and architectural windows.

ProcessPro hires; recognized in top 20 ProcessPro, a leading mid-market ERP software solution company, hired two new team members: Amy Stephens as technical business analyst, and Cynthia Virnig as implementation analyst. Virnig

ProcessPro was named to CIO Review’s CIO Manufacturing Tech Solutions 20. This annual listing recognizes the 20 most promising technology companies offering manufacturing tech solutions. Compiled by Whitney Bina. For consideration in News Reel send your news release to givers@ BusinessCentralMagazine.com

The Central Minnesota Community Foundation received a record $18.2 million in gifts at the end of 2013 to push its total assets over $100 million for the first time. The end of 2013 brought a significant spike in giving by local individuals and organizations. The Community Foundation received $16.1 million of the $18.2 million gifts in December. The Community Foundation established 25 new funds representing $9.9 million in gifts during the first half of its fiscal year ending Dec. 31, 2013.

GETTING GOING

Getting to Know You Don’t be fooled. Who and what you know are the best ingredients for success. By Greg Vandal

he Governor’s name has faded into distant memory. He, no doubt, didn’t remember the event beyond the span of that very week much less had any lasting impressions of the college senior who was his tour guide that afternoon some four decades ago. Active in student government and other college organizations, I had been asked to host the state’s Chief Executive Officer as he moved about the campus. My sister, a freshman at that same university, said what only siblings can so “sweetly” proclaim: “Rubbing shoulders with the Big Wigs, are you Greg?” Admittedly a bit full of myself because of the gubernatorial connection, my response contained an equally snarky tone: “It’s not what you know but who you know that counts…”

Some months later, a degree in hand and in search of a first teaching job, I found positions were not plentiful. And the Governor didn’t call to help. I eventually applied to the one spot open – a state removed from my home – and felt really good to land the post. I learned later that candidates were scarce, too. Few persons were interviewed for that midwinter assignment; I proved to be my own competition. Still, that first employer didn’t know me and surely none of my references alone could really open any doors. The district didn’t have to make the hire. In retrospect, it was my civic engagement, coupled with what I had been trained to do, that seemed to matter to the school I was called to serve. Both what I knew and who I knew – as represented by connections to clubs and

activities, volunteer efforts and service organizations – provided the compound benefit. It is an old formula but one I still share with graduate students in my adjunct work and with the Chamber Leadership classes I regularly teach. It is a mantra that is held by all the successful persons I know – in the public and private sectors alike. These good people remain involved in things beyond themselves: scouts or Rotary or church or United Way or Chamber... They are connected to the community and they couple “who you know” with a knowledge base carefully nurtured and developed through study and hard work. These folks understand, as the now much older college kid learned along the way, that one without the other is simply incomplete. BC

About the writer Greg Vandal is the sole proprietor of Vox Liberi, a consulting business that delivers planning and project management services to clients in the public, private, and nonprofit sectors. He is also a partner in PEER* Solutions, a business that delivers Professional Educator Evaluation Resources in the public school sector. Greg can be reached at greg.vandal@voxliberi.com or through www.peersolutions-usa.com.

Business Central Magazine •• MARCH/APRIL 2014

NEW IN TOWN

Ryan Daniel

Executive Director of Metro Bus

Age: 34 Previous employer: Washington Metropolitan Area Transit Authority Business Central: When did you start in your current position? Ryan: August 19, 2013

BC: What will you miss most about your previous position? Ryan: The people and relationships that I developed.

BC: What are you looking forward to the most in your new position? Ryan: Leading a dedicated group of transit professionals as we become the transportation mode of choice for the citizens of St. Cloud. BC: Where did you grow up? Ryan: Brooklyn, NY

BC: What are your hobbies? Ryan: Traveling and searching for model aircraft scale 1:200 and transit buses scale 1:64. F U N FA C T

I have traveled to over 15 countries including: Brazil, Singapore, France, Germany, Spain, Switzerland and Italy to name a few—with Australia as my goal for 2015. I use the transit system wherever I travel and go jet skiing and parasailing on the local beaches given the appropriate climate.

Rick Conway CPA Partner

Mike Zager CPA, CSEP™ Partner

Michael Johnson CPA, CVA, ABV

Top 25

CPA Firm

in Minnesota

REAP

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UPFRONT NETWORK

THE TROUBLE WITH BUSINESS

Engaging Employees

By Tracy Knafla

How to Increase Employee Engagement in 524 Easy Steps! Does it really take 524 steps? No! Then why do we act like it does? Employee engagement is not a mysterious, unusual phenomenon. If I could guarantee that you would increase your employee engagement in 524 steps, would you follow them?

Most likely not. The idea of implementing that many steps to accomplish this goal seems overwhelming. So, just how many steps are you prepared to follow? Let’s stay in the single digits! Before they are revealed, however, we need to understand why employee engagement is important to your business. If you believe, as many companies do, that “your

About the writer

Employees who feel valued take pride in their work and want to do a great job.

employees are your most valuable resource,” shouldn’t they be treated as such? Employees who feel valued take pride in their work and want to do a great job. Employees who feel a sense of ownership within their position become advocates and trend setters within your company. They function at a higher level, pushing others to do the same. In the process, they improve the quality of your product as well as your service to your customers. All of which can be quantified

as a contribution to your bottom line. Don’t believe this? Look at the opposite scenario. Disengaged employees waste company time complaining about everything. Their work habits suffer as they believe it doesn’t matter. Instead of encouraging co-workers to excel, they encourage cutting corners and sloppy workmanship. They cost the company tremendously through lost productivity and increased behavioral issues, as well as customer complaints and product dissatisfaction. All of which can also be quantified as a drain on your bottom line. Employee Engagement is the catchy new trend in business circles. Do a quick Google search for the phrase and you will find thousands of articles, advertisements, and ideas on increasing employee engagement. Don’t spend hours culling through these. Those hours will be better spent quickly finishing this article and implementing the strategies identified here. It does not take 524 steps to accomplish, yet there are specific strategies, that, if followed, will increase your likelihood of cultivating engaged employees.

Tracy Knofla is the co-owner and featured consultant of High Impact Training. She has been presenting to audiences across the country for more than 25 years.

Business Central Magazine •• MARCH/APRIL 2014

Seven essential strategies to creating employee engagement: 1 Hire good people. Not the convenient people. Hire for attitude as well as skills. Skills can be taught, attitude is much harder to change.

2 Train new employees. Not just until you are tired of it, but until they feel a sense of mastery. It takes longer than you think, but it is worth the time investment.

3 Learn the strengths/ weaknesses of your employees. Do everything possible to capitalize on their

strengths and compensate for their weaknesses.

performance reviews are not the best way to encourage or change behavior.

4 Provide clear direction about the company and their specific roles within it. Make sure they know how their jobs help the company achieve its goals. Regularly reinforce the importance of their contributions to the success of the whole.

5 Be fair, consistent and GENEROUS with both praise and correction. Employees want to know what they are doing well and need to know how to correct performance issues. Once–a-year

6 Regularly solicit employee ideas and feedback and implement as many as are feasible. Don’t make it a contest or think the ‘suggestion box’ is enough. Your employees are in the best position to provide critical feedback and will respond favorably when their ideas are implemented.

7 Focus on ‘Points of Pride’ within the company. Something to rally around: “100 days injury free,” “92% excellent customer service

ratings,” “Orders shipped earlier than anticipated,” etc. It need not include a marching band, but it should be prominently displayed and promoted company-wide and beyond. Admittedly, these seven strategies encompass a multitude of behaviors and philosophies. Yet, if you were to conduct an honest assessment of your current practices using these as the benchmarks, where do you suppose your business would score? Start this month! Work your way through this list and enjoy the positive changes that will appear. BC

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TOP HATS | New Business

25 year Chamber member Chamberlain Oil Co., Inc., oil distributor, 1180 29th Ave. NE, Sauk Rapids. Pictured: Bob Lien, Bill Chamberlain, Tony Chamberlain and Tauna Quimby.

Jack Richter Sings, providing quality vocal services and music for corporate events, weddings, funerals, and anniversary events, 416 5th Ave. N, Sartell. Pictured: Bob Lien, Jack Richter and Inese Mehr.

25 year Chamber member GLTArchitects, 808 Courthouse Square, St. Cloud. Pictured: Bob Lien, Daniel Tideman, Evan Larson and Jill Magelssen.

Central Perk, LLC, coffee shop, wine bar, 906 W St. Germain, St. Cloud. Pictured: Sheila Tepley, Alan Scherr, Odessa Scherr and Diane Ohmann.

Ecig Lounge, providing all your vaping needs in a lobby atmosphere with big screen TVs and free wifi, 69 10th Ave. S, Waite Park. Pictured: Tad Schoeppner, Bennie Muhammad, Tami Hass-Muhammad, Toni Kopponen and Chris Panek.

TOP HATS | Milestones

Fresh Coat Painters, residential and commercial painting services, 53 33rd Ave. S, St. Cloud. Pictured: Tauna Quimby, Eric Heipel and Jayne Greeney Schill.

Business Central Magazine •• MARCH/APRIL 2014

25 year Chamber member Goodwill/Easter Seals MN, providing transitional employment and skills training programs, and medical equipment loans to those unable to afford it; 50 2nd Ave. S, Waite Park. Pictured: Diane Ohmann, Kim Clubb, Maureen Gaedy, Julie Danda and Bob Lien. 25 year Chamber member Granite City Appraisal, LLC, real estate appraiser and consultant, 22 Wilson Ave. NE, Suite 202, St. Cloud. Pictured: Bob Lien, Janet Zitzow, Ron Zitzow, Michele Hinnenkamp and Tauna Quimby.

TOP HATS | New Locations, Ownerships & Expansions

Resource Training & Solutions, providing training and resources to help school districts, governments, companies, organizations, and individuals be more successful, 137 23rd Street S, Suite 201, Sartell. Pictured: David Borgert, Tammy Biery, Rob Cavanna and Beth Putz.

Geyer Wedding & Event Rentals, 1812 St. Germain Street, St. Cloud. Pictured: Shannon Templin, Lana Hansen, Brittnee Dhein and Jill Magelssen.

TOP HATS | New Locations, Ownerships & Expansions

TOP HATS | New Members

Reach-Up, Inc., (Head Start), 350 Highway 10 S, Suite 100, St. Cloud. Pictured: Tauna Quimby, Linda Maron, Sue Huot and Diane Ohmann.

Mille Lacs Band of Ojibwe, education and relationship building with surrounding communities, 43408 Oodena Drive, Onamia. Pictured: Jayne Greeney Schill, Carolyn Shaw and Jill Magelssen.

Clearent, intelligent payment processing for today’s merchants, 177 Cardinal Lane, Clearwater. Pictured: Chris Panek, Brenda Farrell, Rollie Lange and Sheila Tepley.

Cohlab, developer of web and mobile strategies, including website and mobile website design and hosting, geo-marketing, and SEO, 1721 Grizzly Lane, Sartell. Pictured: Jill Magelssen, Cliff Robbins, Heather Robbins and Bob Lien.

Dan Anderson Agency, State Farm Insurance, 3306 3rd Street N, St. Cloud. Pictured: Roger Schleper, Dan Anderson and Diane Ohmann. Rum River Barn & Vineyard, overlooking three acres of grape vineyards, old oak forests, and white pines with multiple indoor and outdoor locations, for weddings and special occasions, 42618 78th Street, Hillman. Pictured: Beth Putz, Melissa Gaetz, Carvin Buzzell and Diane Ohmann.

IIW, P.C., architecture, civil, environmental, municipal, structural, and transportation engineering, construction services, and land surveying, 113 5th Ave. S, St. Cloud. Pictured: Diane Ohmann, David Leapaldt and Bob Lien.

Diversified Media Resources, a total electronic communications provider, specializing in location and studio video production; video editing; event video production and support, 113 5th Ave. S, St. Cloud. Pictured: Tauna Quimby, Jay Burnham and Bob Lien.

Strata Performance Solutions, generating validated and reliable information for hiring and promoting the right people, 516 Brookwood Lane, Sartell. Pictured: Sheila Tepley, Bob Ringstrom and Chris Panek.

Strack Companies, commercial/ industrial general contractors, construction managers, and real estate services firm, 137 33rd Street S, Suite 200, Sartell. Pictured: Jayne Greeney Schill, Bob Strack and Beth Putz.

RY RSA VE NI

ANN IVE

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ANN IVE RS

TA SO NE

A OT

AN NI

Y AR RS

ARY RS VE

MI NN

MI N

MIN NE S

Celebrating 42 Years of Excellence in Caring for You!

TA SO

A OT ES

MIN NE

Continuing to Make a Difference!

Accredited by Accreditation Association for Ambulatory Health Care, Inc.

St. Cloud Surgical Center 1526 Northway Drive • St. Cloud • 251-8385 • 800-349-7272 www.stcsurgicalcenter.com

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UPFRONT NETWORK

NETWORK CENTRAL

Grow!

The Chamber’s Technology & Education Conference offered opportunities for participants to learn, network and profit from the experience.

Anthony Farag, Resource Training & Solutions, helps session attendees understand what the iPad can do with the new iOS operating system.

Vaultas was one of 24 booth sponsors sharing the latest in business information with attendees.

Pam McIntosh, Rasmussen College (L) and Katie Wayne, College of St. Scholastica two of the event sponsors.

Talking with vendors about current business training and technology is a highlight of the conference.

Session attendees take a break for a snack and some networking.

Business Central Magazine •• MARCH/APRIL 2014

Brian Hart, Sandler Training, speaks to a full house on “Taking Control of Your Time.”

Over 200 people attended the Chamber’s annual Technology and Education Conference in November.

NETWORK CENTRAL

Network!

Rengel Printing celebrated their expansion by hosting Business After Hours in September.

Kevin Johnson, 44 Sign Co. and Kipp Hardison, Ground FX Media

Jay Vachal, Arise Home Health Care; Mary Adelman, Adelman Advertising; Angie Jacobs, DJ Bitzan Jewelers; Rob Lindholm and Sara Kunz, ePromos.

Lisa Braun, City of St. Cloud - RSVP and Jackie Scholl Johnson, Big Brothers Big Sisters of Central Minnesota

Ryan Davidson, Central Minnesota Credit Union and Randy Utecht, St. Cloud Overhead Door

Matt Westlund, N2 Publishing; Tanja Goering, Pro Staff; and John Riordan, DAYTA Marketing

Chamber volunteer Top Hatters Scott Anderson, Statewide Property Inspections; Shelia Tepley, Thrivent Financial; and Brian Jarl, Stearns Insurance Services

Gary Berg, G. L. Berg Entertainment, Performing Artists & Speakers; Judy Berg, The Good Shepherd Community; and Wendy Haus, Catholic Charities

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Entrepreneurism

Doing Good

Tech Strategies

Tech News

Management Toolkit

Economy Central presented by Falcon Bank

BUSINESS TOOLS

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RESOURCES THAT HELP YOUR BUSINESS GROW

ENTREPRENEURISM

Creating Structure

A successful business requires a solid foundation. By Betsey Lund

tarting a new business can seem like an intimidating and even overwhelming experience. Creating a new business is not an event, but rather a process and a good road map is essential to get you to where you want to go. In addition to determining what and how to sell a product or service, one

of the first decisions a new business owner must make is what structure will form the foundation of the new business. The owner must also consider whether the new business will be incorporated or unincorporated. One of the most important reasons to incorporate a new business is to protect the owner’s personal

About the writer

Because of the complexities of forming an incorporated entity, a business owner is well advised to seek the advice of an attorney. assets from the business’ liabilities. When the business entity is properly formed and operated, the owner is not personally liable for the debts of the business and the owner’s personal liability is limited by the amount personally invested into the business. The type of business entity selected will also have different tax consequences. Unincorporated businesses are a sole proprietorship and a general partnership. In a sole proprietorship, the business is owned by only one person. In a general partnership, the partners equally share the responsibilities of managing the business and each partner is responsible for the business’ debts. Creating an incorporated business entity, such as a C-Corporation, S-Corporation, limited liability company (LLC), or a form of a limited

Betsey Lund is an attorney with Franz Hultgren Evenson, P.A., in St. Cloud. She practices in the areas of employment law, business law, family law, and estate planning.

Business Central Magazine •• MARCH/APRIL 2014

partnership can be more difficult because each different type of business entity has its own unique set of rules and regulations. In any incorporated structure you will need to register with the Minnesota Secretary of State and create and follow the governing documents of the entity. Because of the complexities of forming an incorporated entity, a business owner is well advised to seek the advice of an attorney. No one ever created a new business with the intent of having a failing business. A new business owner needs to manage several aspects of the business all at one time: personnel needs, inventory needs, location details, financing needs, and various legal compliance issues. It is important to take the time to consult with an attorney to learn about the various entity options. It is easier and more cost effective to properly structure a new business entity upfront, rather than attempt to remedy problems that arise after the fact. BC

DOING GOOD

WSB Tops Donors WSB & Associates won the holiday food drive competition that pitted them against their Minnesota competitors. The eight Minnesota engineering and environmental consulting firms that participated raised over $112,000 and nearly three tons of food for food shelves around the state. Because the firms varied in size from 120 employees to over 600, results were calculated per employee, and one pound of food was valued at $1. After four weeks, WSB & Associates was named the winner, with combined food and cash donations averaging $85 per employee – for a total of $17,000. This was the second year for the competition. Total donations increased over 20 percent from last year’s totals.

BY THE NUMBERS

47%

Small businesses that say offering robust benefits while staying within budget/cost constraints is a top benefits challenge.

61%

employees say they are likely to accept a job offer with slightly lower compensation, but better benefits.

58%

employers strongly/somewhat agree that “Our workers are taking full advantage of the benefits we offer.”

38%

employees completely/ strongly agree with the statement “I am taking full advantage of my employee benefits.”

Source: 2013 Aflac WorkForces Report involving small business employers and their employees

People helping people. It’s a simple concept that over 50,000 of your friends and neighbors in Central Minnesota have already discovered. We invite you to see how we can make a difference with your personal or business finances. Ryan Davidson Branch Lender

Where St. Cloud business does lunch. ...and dinner...and drinks after work. Ciatti’s is St. Cloud’s business restaurant. Contact Paul or Abby and learn how your business can improve the bottom line each time you dine with Ciatti’s Preferred Business Program. Stuck at work? Ciatti’s now delivers. VIsit CiattisRistorante.com for info.

2635 West Division Street Saint Cloud 320-257-7900 CiattisRistorante.com

RISTORANTE

1300 Elm Street East, St. Joseph 888.330.8482 | myCMCU.org facebook.com/myCMCU Federally Insured by NCUA

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BUSINESS TOOLS G R OW

TECH STRATEGIES

It’s Everywhere!

Every major business, event and television show is now leveraging social media in some fashion. By Dawn Zimmerman

From Instagram to Pinterest to Snapchat, the fastest growing platforms in social media are image-focused.

micro videos and commonly last between 6 and 20 seconds. In many ways, it’s becoming the new picture. It’s always been hard to capture an audience’s attention and hold it longer than 10 seconds. For years, marketers tried. Now, they’re just getting creative in creating a series of 10-second video clips. The interesting part is that people are watching minutes of videos. They just want them in 10-second bites.

ocial media is challenging our way of thinking – and changing the way we market. This year, organizations will become even more sophisticated in their social media practices. Here’s a look at just three trends to consider when implementing your social media strategy:

Videos are getting short. Really short. Twitter has challenged users to appreciate brevity with only about a sentence to share a message. Not long ago, users would easily watch a 3-5 minute video and 5-7 minutes if the content stayed engaging. That’s changing. Now, we’re talking seconds. They’re called

Image centric content is king. For centuries, men have been pinned as being visual. But the playing field is being leveled in social media. From Instagram to Pinterest to Snapchat, the fastest growing platforms in social media are image-focused. Pinterest, which caters especially to a female audience, is about idea sharing through a variety of visually focused virtual peg boards. That desire for imagery crosses all platforms. On Facebook, photos and videos consistently perform better

About the writer Dawn Zimmerman is CEO of The Write Advantage, a St. Cloud-based communications company that specializes in social media.

Business Central Magazine •• MARCH/APRIL 2014

than posts with just text. This challenges organizations to consider not only what they can say, but more importantly, how they can show it.

The next big thing is changing. By all estimates, tools such as Facebook, Twitter and Instagram have a stronghold on the social market and remain relevant. But new tools are arriving daily as social becomes the standard in personal and business communications. In many cases, the newer tools are becoming more targeted in their focus and audiences. Ever heard of SoundCloud? It actually scored a spot in the top five social media platforms with about 250 million active users at the end of last year. This audio sharing platform allows users to upload, record and share their originally created sounds. First debuting in 2007, this Berlin-based startup has offices in San Francisco, New York, London, and Bulgaria and a growing community of artists, bands, podcasters and music lovers. So, what’s the one tool business leaders should be using to stay contemporary? Twitter. For those who have neglected to buy into Twitter, this will be your year to get started. BC

TECH NEWS

Bendy Gadgets

photo: www.geek.com

Graphene — a one-atom-thick layer of carbon that is the strongest, thinnest and most conductive material discovered yet – may soon be the basis of the next big innovations. Graphene-based inks are easier to handle than traditional metal-based ones – less toxic, cheaper and easier to dry. Think digital screens that you can fold up like paper, solar cells embedded in house paint, flexible handsets, and batteries printed on the bottom of cell phones. Source: TechNews Daily

IS YOUR CAR SPYING ON YOU?

DID YOU KNOW?

Your next car may record data about your driving, poised to dump the information to your insurance company should you have an accident. Event Data Recorders (EDR) can’t monitor how you’re feeling behind the wheel (at least not now), but the tamper-proof devices do record driving data such as speed, whether brakes were applied before a crash, forces at impact, air bag deployment, and whether occupants were wearing seatbelts. The National Highway Traffic Safety Administration wants all cars and motorcycles built on or after Sept. 1, 2014, to have one. Source: TechNews Daily

Thinking about college entrance exams or graduate school? St. Cloud State University has extensive test prep courses:

GRE LSAT GMAT ACT

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employees agree that a well-communicated benefits program would make them less likely to leave their jobs.

REGIONAL DIAGNOSTIC RADIOLOGY

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• Experienced, expert instructors • Comprehensive preparation materials

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Dr. Hou is a Neuroradiologist and is certified by the American Board of Radiology. He completed his Neuroradiology Fellowship at the University of Colorado Hospital in Aurora. He completed his Diagnostic Radiology Residency at Los Angeles County HarborUCLA Medical Center in Torance, California and at the University of Colorado Hospital. Dr. Hou was the Senior Instructor of Radiology at the University of Colorado Denver-Anschutz Medical Campus. His area of interest is neuroradiology.

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BUSINESS TOOLS G R OW

MANAGEMENT TOOLKIT

Employer Beware

Employers who wish to obtain an applicant’s criminal history must be aware of the potential pitfalls. By Lori Athmann

he law that allows employers to gain information about an applicant’s background is also riddled with requirements, prohibitions, and limitations. One wrong misstep and the employer may find itself on the wrong side of a lawsuit. In conducting background checks, an employer should keep in mind the four “W”s: who, when, where and what. 1 Who can you obtain a criminal history on? As a part of your hiring process, you can inquire into and conduct a criminal background check on any applicant. It is essential, however, that the practice is universal to all applicants. Picking and choosing certain applicants based on race, gender, nationality, or any other protected class status (or even a “gut feeling”) can give rise to claims of discrimination. An employer should have a written policy outlining the process to be followed. The policy must be applied, without exception, to all applicants applying for similar job positions. It is also good practice to obtain a written consent from the applicant prior to doing the criminal background check. 2 When can you inquire into an applicant’s criminal background? After January

1, 2014, employers may not ask an applicant about their criminal record, or conduct a criminal background record check, until the applicant has been selected for an interview, or a conditional offer of employment has been extended. Any inquiry, direct or indirect, prior to that time is unlawful and can give rise to costly penalties being assessed against the employer. Be sure to revise your application to remove any questions regarding criminal history. 3 Where can you obtain background records from? The Minnesota Bureau of Criminal Apprehension (BCA) maintains a computerized database of criminal records. An applicant may access their own criminal history record by visiting the BCA or by accessing the database via the internet. The employer may also obtain it with a signed informed consent from the applicant. Criminal records can also be obtained through a consumer reporting agency, such as a credit bureau, background check service, detective agency, or other investigation service. However, if an employer elects to use a third party service rather than the BCA, additional and mandatory disclosures, consents, certifications, and notices must be strictly followed.

Business Central Magazine •• MARCH/APRIL 2014

Any inquiry, direct or indirect, prior to that time is unlawful and can give rise to costly penalties being assessed against the employer. 4 What can be considered in making hiring decisions? An arrest record is unreliable evidence that a person has actually committed a crime. After all, one is innocent until proven guilty. It is more proper

to consider the applicant’s actual criminal convictions. Excluding an applicant solely because of a conviction can still, however, open the door to claims of discrimination if it tends to exclude applicants within a

protected class. An employer must consider the nature of the offense, the time that has passed since the conviction, and the job-relatedness of any conviction. For example, an employer might be more justified in excluding an applicant with an assault conviction from a position that would require the applicant to enter into customers’ homes to perform the duties, than perhaps for an after-hours custodian position. BC Lori Athmann is a partner with Jovanovich, Kadlec & Athmann, PLLP.

BY THE NUMBERS

JOBS

Construction is coming on strong, but still far below the boom years of the mid-2000s.

6,500

the number of construction jobs added in Minnesota in 2013

30,000

he number of jobs that have not come back since the mid-2000s

Lisa Koster

34,400

6,300

8,400

MORE TO READ: Check out more information about Commercial Construction in our Special Section found on page 50.

the number of new construction jobs expected to be created by the end of the decade

the estimated number of carpenters Minnesota will need by 2020

the estimated number of electricians Minnesota will need by 2020

Ashley Ohlemann

Joy Schafer Elizabeth Statsick

Linda DooleyBauer

Melissa Theisen

Rich Remer, President

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TRAILBLAZERS: ST. CLOUD MEDICAL GROUP

Gary Kolle, M.D. & Gayle Leen, PA-C Physician & Physician Assistant • Midwest Occupational Medicine - St. Cloud Medical Group

“We also take the time to answer patients’ questions they might have so they can leave with their mind at ease.” — Gayle Leen, PA-C BEHIND THE PROFESSIONALS Gary Kolle, M.D. Age: 57 Education: Mayo Medical School, Rochester, MN (Residency); Black Hawk Family Practice, Waterloo, IA (Certifications) Hobbies: Camping, hunting, fishing, water sports Best Advice: True preventative health mitigates risk to minimize injuries before they happen.

Business Central Magazine •• MARCH/APRIL 2014

hen workplace injuries stop employees from working, Gary Kolle, M.D., Gayle Leen, PA-C, and the team at Midwest Occupational Medicine (MOM) start working to help patients recover. Settled on the second floor of St. Cloud Medical Group’s South Campus, MOM has been helping employee patients in central Minnesota return to their livelihoods for over 20 years. Kolle’s experience helps him see beyond the injury. “My background as a family medicine physician helps me see the whole patient,” says Kolle. “I notice underlying medical issues that might contribute to the injury. It’s rewarding to see a patient with a chronic debilitating problem minimize their suffering and disability.” “Communication is so important to the process,” adds Leen. “We let employers know what employees can and cannot do. We also take the time to answer patients’ questions they might have so they can leave with their mind at ease.” Detailed progress reports are sent with the

employee for the employer after each visit. As a part of St. Cloud Medical Group South Campus, MOM’s comprehensive employment physicals (DOT & NON-DOT) and drug screening services are supported by the full clinic facilities, including after-hours Express Care, lab, imaging, and rehabilitation with partner Northern Star Therapy. MOM staff enjoys going out to meet with area businesses to listen to their occupational concerns. Worksite visits provide insight to working environments and aid an employer’s pursuit of costeffective, time-managed healthcare services. After all, MOM’s mission is to provide comprehensive treatment and diagnostic services that enhance the health, safety, and productivity of their workforce. All that hard work pays off. “I’m always encouraged when a patient can return to work and make a living without the hazard of re-injury,” says Leen. “It’s satisfying to know that we’re helping the employer get the best performance from their employee.” www.stcloudmedical.com

Gayle Leen, PA-C Age: 45 Education: Augsburg College, Minneapolis MN (Certifications) Hobbies: Spending time with family and friends, jigsaw puzzles, sports, and meditation. Best Advice: Complete rehabilitation treats the whole patient, not just the symptom.

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ECONOMY CENTRAL PRESENTED BY FALCON BANK

Air Service Returns to St. Cloud Departures to Chicago will be landing in St. Cloud soon

aily direct service from the St. Cloud Regional Airport to Chicago, Illinois will begin May 6, 2014. The United Express service will be provided by SkyWest Airlines. Twice-daily flights will use 50-passenger Canadair Regional Jet 200 aircraft. The trips to Chicago can link Central Minnesota travelers with connection opportunities to 127 domestic and 37 international destinations on a total of 567 flights. Flight reservations can be made immediately at www.United.com.

Restoring commercial air service to the St. Cloud Regional Airport is one of six strategic initiatives of the Greater St. Cloud Development Corporation (GSDC). Al Kremers, chair of GSDC Regional Air Service Corps, has led the effort to recruit a major carrier to St. Cloud. “We’re proud to announce we have regained daily air service for the St. Cloud region,” he said. “The community support has been vital in achieving a confirmed air service partnership.”

BY THE NUMBERS

Best Performance St. Cloud ranked 30 in the 2013 Milken Institute’s Best Performing Small Cities Index. The index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary, and technology growth. In most years, these give a good indication of the underlying structural performance of regional economics, according to the Milken Institute. St. Cloud ranked 78 in the 2012 index. Rank: 5 yr job growth+

Rank: 1 year wage and salaries growth**

Rank: 1 year relative high-tech GDP Growth*

2013 Rank

2014 Rank

Rank: 1 yr job growth*

St. Cloud

Rochester

116

178

Eau Claire

107

103

124

Fargo

Sioux Falls

Dubuque

Minneapolis

122

City

To view the complete report visit www.BusinessCentralMagazine.com

Business Central Magazine •• MARCH/APRIL 2014

*2011-2012 +2007-2012 **2010-2011

Source: Milken Institute

Economy Central presented by

$16,000

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No. of4 permits 47 49 25 18 57 65

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A S O $150k

No. 0 of permits 0 0 42

Food & Be Unemployment Rates 4.1%

$0 M $60k A M DJ

$53,54520 $50k

St. Cloud Minneapolis/St. Paul $200k Minnesota 40 United States

COMMERCIAL BUILDING PERMIT COMMERCIA

$100k

$250k

A S O N D SM OJ NJ $0 $0 D J F M A M DJ

$1M

$200k

STEARNS COUNTY

2.5%

1.1% -1.5% 4% A 1% M J J J F AM SA OM NJ D J O

JM AA

No. of permits 0

Sheriff ’s Foreclosure Auctions -0.5 Housing Prices -0.5 $300k

$200k

$800k

St. Cloud Source: www.positivelyminnesota.com 1.1% $50k 4% $0 Minneapolis/St. Paul J F M A M 10 J N J D A J SF OM NA M DJ S AO M N J N JJ FA M J A S O N Minnesota BENTON AND STEARNS COUNTY MONTHLY %COUNTY CHANGE - MONTHLY % CHANGE BENTON AND- STEARNS United States

M 4th Jquarter J A 1stS Quarter O N

2.0

MINNESOTA

4.1% 2%-1.0%

Minnesota Nonfarm JobsNonfarm Jobs Minnesota D

0 M $1M AD MJ

F S

$250k

XXXX XXXX XXXX

2.5%8 0

11 141 16 10 $800k

Unemployment Rates Food & Beverage Tax Collections 0.5 0.5

N N/A

St. Joe

$343,111

$200k $90k

No. of permits 0

$150k

4% SM

MINNESOTA - MONTHLYMINNESOTA % CHANGE - MONTHLY % CHANGE0.8

COUNTRY WIDE 10%

MINNESOTA

$200k

employment Rates Unemployment Rates 4th quarter

N/A

3.1%

Median Housing Prices Median Housing Prices1%

JM AA SM OJ NJ

-0.8

AD-0.6 MJ

-0.5%

A S O N $0 A M JD JJ AF $60k

-0.4

QUARTERLY % CHANGE6% IN STEARNS 30 REAL GDP $400k COUNTY2012/13$400k

2.5%

-0.4

1st Quarter

0.0 -0.2

Source: www.positivelyminnesota.com 1.1% 0

1% uctions Auctions oreclosure

F S

Gross Domestic Product Sheriff ’s Foreclosure Auctions $300k

$50k

XXXX SM

0.2

$100k

$26,995

UNITED - MONTHLY /13 QUARTERLY % CHANGE INSTATES REAL GDP 3%% CHANGE $400k $400k 6% $120k $100k 1.0

$251,275

$150k 3.1% Jobs Nonfarm oss Domestic United ProductStates $150k

0.4

$7,500

ST. CLOUD

$600k $150k

JJ O

$300k 2012/13$400k QUARTERLY % CHANGE IN REAL GDP STEARNS $400k COUNTY

Sheriff ’s Foreclosure Gross Domestic Auctions Product

$3,745

. CLOUD

J A

4th quarter

$940,000

$800k

$3,269,962

$800k

$3,397,262

NGE

Gross Domestic United ProductStates Nonfarm Jobs

$7,500

JD AJ SF

$3,745

$940,000

M J 10%

$343,111

$1M

$343,111

$3,269,962 $343,111

D J

16 10 11 141

COUNTRY WIDE COUNTRY WIDE 2012-2013 % CHANGE COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED 10% 10% 0 $0 $0 $0 $1M J J A S O N D A S O N D OM N A DM N D J F M $1M AD MJ JF JM AA SM OJ NJ N D J F M A NM DJ 2.0% $300k 2012/13 QUARTERLY % $300k CHANGE UNITED IN STATES REAL GDP - MONTHLY % CHANGE STEARNS COUNTY2012/13 QUARTERLY % CHANGE IN REAL GDP 5% 5% 1.5% 1.0 50 $800k $800k $250k $250k 8% 8%1.0% 0.8 4.1% 4.1% COUNTRY WIDE ST. CLOUD ST. CLOUD ST. CLOUD $200k $200k 0.6 4% 4% 40 $600k $600k 0.5% $350k 10% $350k $150k $3,397,262

N DJ

-0.4

1.1%0

$250k

Unemployment Rates Unemployment Non Farm JobsRates $50k

OMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING $350k PERMITS, CONSOLIDATED $350k

arm Jobs

Food & Beverage Collections ax Dollars Food Tax & Beverage Tax Collections St. Augusta Unemployment St. Joe CLOUD ST. CLOUD St. Augusta ST.Rates St. Joe 2012-2013 2

J D A J S F OM N A DM $0 $60k D J

100 J A

$343,111

S $0

$90k

Lodging Dollars Food4.1% & Beverage Tax Tax Collections

0.8 $200k

$200k $10,404 $90k

M N

$2,475,200

$600k $150k

ST. CLOUD

1.0

150

$15,000

Gross Domestic Product Sheriff ’s Foreclosure Auctions

$251,275

$120k

$3,269,962

ST. CLOUD

$1M

UNITED STATES - MONTHLY % CHANGE 2012/13$400k QUARTERLY % CHANGE $400k IN REAL GDP

$800k

XXXX

0.0

$1M

$21,733 $100k $10,404

$600k

$600k COMMERCIAL BUILDING PERMITS, BUILDING CONSOLIDATED $600k COMMERCIAL PERMITS, CONSOLIDATED $350k $150k

200

$251,275

$800k

$200k$15,000 $10, $30,06

Lodging Dollars Food & Beverage Tax Tax Collections St. Joe St. Augu ST. CLOUD ST. CLOUD

Gross Domestic United ProductStates Nonfarm Jobs

$200k

$21,733 $53,545 $100k

0.4 $0 OA N M DJ J DA 0.2 permits 18 416 of 2 1 No. 9 21 48

No. of permits 4

O JD

$251,275

AF N

$.5M 8

1 $800k

A A

$26,995

JJ O

S $0 M

$0 $1MN

J M

$2,224,021 $3,397,262

0.6 100

$600k BUILDING PERMITS, CONSOLIDATED $600k COMMERCIAL BUILDING PERMITS, CONSOLIDATED $300k $1M

COMMERCIAL BUILDING PERMITS,BUILDING CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDA

2 -0.2 $21,733 2% Sartell, Waite -0.2 Building departments $200kfollowing cities: St. = exceeds chart scale for the Cloud, Sauk Rapids, Park, St. Augusta,$200k and St. Joseph. $15,000 Sources: $200k $15,000

No. of permits 1

St. Joe

$21,733

$26,995

$15,000 12

$200k

Sales Closed - Total Lodging TaxHome Dollars

8 $53,545 $200k

$12,895

0.8 $200k

150

A $30k

$343,111

$2,135,900

$8,024,900

1.0

150

$200k $30,060 BENTON COUNTY$0

DS AJO M FN M M JD JA SJD 10 $400k 3 3 1 21 1 372 2111 No. 0 3 of 31permits 16 0permits 141 1 219

53 17 $800k

$26,995

COMMERCIAL $300k

UNITED STATES - MONTHLY $400k $200k $400k10% CHANGE

$1M $0 M A

0$1M D

0 $1M D J F M A M $1M J J D A J S F OM N A DM $0 $405,010 $405,010 J JD A S O N D D J N

$400k

$21,733 $100k

$0 $0 N$60kJD J DA J S FO MN AD M JD M

$30k

$53,545 $200k

$200k

$500k $0 M A

$1M

$1.5M

100 J A

United States Nonfarm Jobs

$400k

$0 FA

$2,135,900

200

Sheriff ’s Foreclosure Auctions ome Sales Closed - Total JJ

$2,475,200

$600k CONSOLIDATED BUILDING CONSOLIDATED $600k COMMERCIAL BUILDING PERMITS, $600k PERMITS,

S $0

$800k

$800k $53,545 $200k

$0 $0 AF SM D OA J NM FDJ MJ AA M SD $400k $400k of permits 18 5 1 1712 47 of 8permits 13No. 08 38 71 12 87 1216 11 11141 10 No.11 of3permits 7 No.94of permits 72 8 4 5 715 711 No. 3 4

S M

Home Sales Closed Sheriff - Total ’s Foreclosure Auctions Lodging TaxHome Dollars Sales Closed - Total Waite Park Sauk Rapids ST. CLOUD St. Augusta Waite Park ST. CLOUD BENTON COUNTY ST. CLOUD

$2M

$200k $15,000 $30,060 CLOUD $0 $600k 200

$500k J A

$2,224,021

$2,135,900

$800k

150

100

$3,269,962

of permits 3

e Auctions Sauk Rapids Sartell

J F AM SA OM NJ DJ A S $200k 112 1711 1011 115 1017 121 1117 $400k 10 11

$343,111

$15,000

$3,397,262

SM OA NM DJ

$400k

11No.11 5 $400k 1712 of permits

$200k $90k

$6,375 $7,500

$0 JF D JM AA SM ODJ NJJ DFA N $400k 127 No. 5 30 of permits 61 016 129 2621 418

$3,269,962

$1M

$3,397,262

$2,475,200

$2,224,021 $2,475,200

COMMERCIAL $600k

$7,500

St. Joe

$200k

$924,028

$800k

$1M

$0 A MD

$940,000

$1M

$0 M JD

$7,500

Waite Park Waite Park St. Joe

$1M

$2,224,021

$800k

$200k$15,000 $30,060

$200k

$0 $0 TS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS,BUILDING CONSOLIDATED ESIDENTIAL BUILDING PERMITS RESIDENTIAL BUILDING PERMITS BUILDING PERMITS AL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDATED RESIDENTIAL BUILDING PERMITS RESIDENTIAL $1M $0

$234,300

$924,028

$8,024,900

$2,135,900

$800k $.5M 8

$2,224,021 $3,397,262

150

$2,135,900

$12,895

$400k2 No. of permits

COMMERCIA COMMERCIAL BUILDING PERMIT $300k $600k

$150k

$1M

$1M $1M $0 A M DJ JJ FA MS AO MN 10 $400k 2 No.0 of permits 1 16 2 9 321 2 8 015 118 164 F

$2,475,200

St. Augusta St. Augusta apids $10,496

$16,000

$.5M

$800k

$10,404

$3,745

40 18

$1.5M $.5M

$6,375 $7,500 $600k

$400k

$10,404

$940,000

57 13

$940,000

$.5M

A M

$800k

$100k

$3,745

3 No. 465 of12 16 150 41 permits 12 19 $2M

J F

$800k

$100k

$7,500

$1M

$200k

$3,745

$200k

COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED $600k $600k $600k $150k 200

200

$12,895

No. permits 38 of 22 29 735

F D

J N

$10,496

D O

$2M $1M S O

$1M $0 $0 $0 $0 $0 $0 $0 S O N D J D J J A F SM ODA NJM DFJ MJ AA MS JO D J F A J M A SD M OJ D JN J AD F SM OA NM DJ J DA J S FO MN AD M A M J J DA J S FO MN AD M $400k $400k 4 permits No. 52 48 27 238 of722 929 7735 841 7150 319 57 1 40 0 52 No. of permits 3 7 of6permits 716 No. 23 5 of 30 6 035 1240 2639 4128 No. 3 48of 1permits 8 of13permits 31 126 23 permits 4 No. 57of permits 65 10 4943 50 8 47 1 45 No. 8 3 3 5465 15 12 1116No. 27 710 311 141

$12,895

$3M $0 A M D

$200k

$50k

$1M

6 $1M $0 A S

$800k

$200k $30,060

$2,224,021

$.5M 8

$1.5M

$200k $30,060

$10,496

$4M

10 No. of permits 1

FA MS AO MN $100k 4 No.2 of permits 7 9 1 7 2 8 4 5 215 711 97 $2M $800k

$12,840,741

$1M

$3M $0 M DJ

$8,241,705

$19,854,821

$.5M $16,000

$17,172,684

$1.5M $.5M

40 52 $5M

$8,024,900

48 150 27 19 10 57 357 440 1252 16

$1M $0

$800k

$500k

$1M

Sheriff ’s Foreclosure Auctions Sales Closed - Total Home Sales Closed - Total Lodging TaxHome Dollars BENTON COUNTY ST. CLOUD ST. CLOUD Waite Park Sauk Rapids ST. CLOUD St. Augusta Waite P

COMMERCIAL BUILDING PERMITS, COMMERCIAL BUILDING PERMITS, CONSOLIDATED $150k $600kCONSOLIDATED

$6M $1M A S

$6,362,170

$2M$1M FA MS

$1.5M

$1M

$250k

$400k

$8,024,900

$50k $6,375 $4M $7,500

$6,375 $7,500

$2,135,900

$50k

$12,895

$1.5M

$12,840,741

Sheriff ’s Foreclosure Auctions Sartell BENTON COUNTY Sauk Rapids

COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED JJ

$200k

$8,241,705

$3,325,100

$5M

$19,854,821

$2,750,900

St. Cloud

$2,021,194

$1.5M

$400k

$100k

$2,359,750

$12,840,741

Sartell

16,000

$2,284,500

$8,241,705

$1.5M

$19,854,821

$100k

$1M

$2M

$1M $1,743,345

$2M

$17,172,684

$1,743,345

$250k

$6M

$234,300

$2M

$8,024,900

$2M

$6,362,170

$2M

United States

0.0

-0.2

M A R C H / A P R I L 2 0 1 4 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

M DJ J J F

$400k

50 47 45 $0 $150k D J $0 D8 No. of permits 3

$12,895

J1 0

No. of permits 4 M A M J

7 J

7 A

4 S

8 O

4 N

10 J

Housing/Real Estate N

100

$53,545

$200k

$15,000 $21,733 4F D J

J J FJ M A

No. of permits 0

J D-1.0 J A

St. Cloud Minneapolis/St. Paul Minnesota United States

N/A

1.0

ECONOMIC INDICATORS & TRENDS $50k F

$.5M

$400k

11 141 N

$15,000 D J F

No. of permits 47 25

3 A

XXXX

8% $200k

XXXX XXXX

$6,375 $7,500

F MBY A FALCON M J J A S BANK O PRESENTED

$100k No. of permits 1 M A M J

$50k

$400k

$200k $30,060 0.0

$16,000

$21,733

$16,000 $0

-0.5

$400k

$200k

M4 0

United States 1 3 5 0

-2.0

No. of permits 4 A M J J

-1.5

Gross Domestic Product

$400k

No. of50 permits 7

XXX $600k

0.5

$.5M

$0 $0 D J F M A M$200k J J S J F M A DM JJ FJ MA AS MO JN JD A -1.0 7 3 4 12 16 150 19 57 No. of permits 3 No. 4 of permits 12 16 2150 3 19 2 57 040 152 16 48 927 2110 8 15 1 St. Cloud $0 J Minneapolis/St. J A S O Paul N D D -1.5 $0 J3 Minnesota J8 A8 S7 O8 N No. of permits 0D 16 D10

1.0

$400k

150

1.5

$.5M

$400k

$150k

$600k2.0

0.5 $0 $06% $53,545 $0 $0 D J F M A M $200k J J A $0S O N D D J F M A M J$200k J A S O N $0 D J J J F A M S A O MN J D J A S O N D A S O N D M A M $100k M A M D J J J F A MS AO MN J D J No. of permits 47 25 33 44 91 141 143 170 181 167 140 69 23 No. of permits 12 19 13 18 4 57 65 49 50 47 45 7 of permits of permits 5 0.0 15 11 7 3 No. of permits 12 19 13No.18 33 No.44 91 1417 1433 1704 18112167 1614015069 1923 57 40 52 48 27 10 4 57 1 65 2 49 4 50 2 47 7 45 9 7 7 8 8 $0 $0 N/A $50k N D D J F M D J F M A M J J A S 2O N D $0 $0 -0.5D J F M D J F M A M J J A S O N D O6 N1 D No. of permits No. of permits 4 7 7 4 6% 1 0 3 1 7 11 141 3 1 1 2 1 3

N D $0 7 8

$200k $200k A S

$400k

ECONOMY CENTRAL

$10,496

19$30k 13

$.5M

$.5M $200k $16,000

$250k $.5M

$60k

$.5M

$100k 8

$251,275

$300k

$26,995

$343,111

$90k

10% $600k

$250k

$350k $600k $1M

-2.0

St.Rapids Cloud Sartell Sauk Rapids Waite Park St. Augusta St. Cloud Sauk Sartell Sauk Rapids COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, United States Nonfarm Jobs Gross Domestic Product Product Creation AL BUILDING PERMITS, CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOL COMMERCIAL BUILDING PERMITS,BUILDING CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED heriff ’s Foreclosure Auctions Median Housing Prices Local Nonfarm Jobs Home Sales Closed Total Lodging Tax Dollars Unemplo Food & Beverage Tax Collections UNITED STATES 2012/13 QUARTERLY % CHANGE IN REAL GDP BUSINESSES CREATING IN LAST YEAR TEARNS COUNTY ST.Lodging MINNESOTA BENTON NEW ANDPRODUCTS STEARNS COUNTY - MONTHLY % CHANGE CLOUD ST. CLOUD COUNTRY WIDE ST. CLOUD Tax Dollars Unemployment Rates Minneso Food & Beverage Tax Collections 5% 0.8%

$30k

J 8

F 0 1

-0.2

2% $400k

$400k

2.5%

0.2

$200k

$53,545

0.0

$100k 6%

$21,733

0.5

$400k

0.0

1.1%

1% $200k

$200k

6% -0.5

$0$15,000

-1.0

N/A

$50k

1.5 8%1.0

$26,995

= exceeds chart scale

$12,895

$.5M

$600k $600k = exceeds chart scale

8% $200k $150k

0.1%

3% $600k

$3,269,962 $2,135,900

3.1%

MINNESOTA 10% 2.0

4.1%

$800k

$251,275

$800k

$3,397,262

$800k

$1M

$2,135,900

$343,111 $8,024,900

$2,475,200

$8,024,900

$1M

$0 St. Cloud $0 0 $0 $0 2nd Quarter D 3rd A S O N D J Quarter F M A M J J $0 quarter M ACentral M D MN J J J F A M S A OM NJ DJ 4th 1st Quarter Minnesota Paul A S O N D S F M A M D J J J F A MS AO MN J D J D J F M Minneapolis/St. A DM JJ FJ M A AS MO JN J-1.5 D A No. of permits -0.2 No. of permits 1 3 8 1 3 6 3 $07 5 6 0 2 6 1 0 3 1 74%11 141 3 Minnesota J F M A M J J A S O N D No. of permits No. of permits 4 7 7 4 8 4 3 8 8 7 8 16 10 No. of permits 1 3 6 3 7 5 6 0 2 6 1 1 0 3 1 7 0 11 0141 0 3 0 1 01 02 21 1 3 3J 5F O N N D J F M A M J J A S O N United States

Minneapolis/St. Paul Rochester

0.4

St. Cloud -0.8 Minneapolis/St. Paul -1.0 N/A 0.0% Rochester $0 J F

$0 $0 D J F M A $50k M J 0.2 J A S O N D M A M J J A S O N D A S O N D D J F M A M D J J J F A M S A O MN J D J D 0% 16 23 30 35 40 39 28 38 22 29 35 41 65 No. of permits 0 $0 D 3 J 6 F 3 M 7 A 5 $50k M 6D J 0J J 2F A 6M S 1A O M N J D No. D3 22J 1 29F 7 35 M1141A14165 M 3 JN1 J D1 A J2 S F1 OM3 NA DM No. of permits 1 0 38 of permits No. ofJ permits 16 23 30 35 40 39 28 J A3 J A S O N D $0 $0 St. Cloud N D J F M A M J J A S O N N 0.0D J F M A M J J A $0

$2,224,021

$8,241,705

XXXX

0.6

$400k

0.2%

-0.6

$250k

$15,000 0.4

$100k $30k

0.3%

-0.4

$.5M

$200k $50k $1M $0

$12,840,741

$19,854,821

$343,111

$17,172,684

0.6

0.8

$1M

0.4%

0.0 -0.2

$60k

$1M

0.5% $600k

0.2

$1M

0.8

$200k $150k

$12,895

$10,496

$60k 50$100k

$1.5M

$1M

XXXX XXXX XXXX

0.4

$250k

$2M

0.6

$800k

$12,895

$400k

0.7%

$1.5M - MONTHLY % CHANGE BENTON AND STEARNS COUNTY 0.6%

$90k

$100k

0.8

Local Nonfarm Jobs

$120k $300k

COUNTRY WIDE $350k .79% 10% $300k

.71%

$0 $10,496

$3M

$3M $90k 100$150k

$8,241,705 $2,135,900 $12,840,741

$600k

MONTHLY % CHANGE $2M

1.0

$10,496

$4M $150k

$350k $19,854,821

$4M

$17,172,684

MINNESOTA 150 $120k $200k

$800k

$6,362,170

$8,024,900

$5M

$6,362,170

$5M

Median Housing Prices

$1M

$2M

ST.$150k CLOUD

$200k

$150k 40

$6M

$1M

$6M

ST.200CLOUD

Sources: Minnesota Compass led4% by Wilder Research; Bureau of Economic Analysis - www.BEA .gov.

-2.0

Commerce/Services

Gross Domestic Product Sheriff ’s Foreclosure Auctions Median Housing Prices Local No QUARTERLY % CHANGE IN REAL GDP STEARNS COUNTY MINNESOTA BENTON AND ’s Foreclosure Auctions Median Housing Local Nonfarm Jobs Sheriff ’s Foreclosure AuctionsPrices Home Sales Closed - Total Lodging TaxRates Dollars les Closed 2012/13 - Sheriff Total Lodging Tax Dollars Unemployment Food & Beverage Tax Collections Sheriff ’s Foreclosure Auctions Home Sales Closed Total Lodging Tax Dollars STEARNS COUNTY MINNESOTA BENTON AND STEARNS COUNTY MONTHLY % CHANGE BENTON COUNTY ST. CLOUD ST. CLOUD 5% $200k 12

4.1%

4% 40

3.1%

$120k

2.5%

$90k

0 0 A

4th quarter

D O

J N

1st Quarter F M D

2nd Quarter J

O D

N J

D $0 F M AN

0 MD

0% D JF

J AM

F SA

M A OM NJ

M DJ

DJ A

JJ S

FA O

M S N

A O

M N

United States SheriffNonfarm ’s Foreclosure Auctions Jobs Jobs Nonfarm HighlightsUnited States

ERLY % CHANGE IN REAL GDP

J 0 A

S D

O J

N F

4.1%

0.6 0.4

0.2

2.5%

0.0 -0.2

0.0

3rd Quarter

-1.0

-0.6 -0.8

-0.8

2nd Quarter

-0.2 -0.4

-0.6

1st Quarter

0.2

D J F M A M -0.2 0 D J F M A M J J AJ S F O M N A D M J A S O N M N J D J J A F S MO AN MD J

J O

A N

S D

3.1%

J J

A J $0A

S N

O S

N O

0.0

-0.2

D N

D 4% M

F M

N JM

D J F M A M J S JA AM S J O J N A

4th quarter

1st QuarterD

4.1% 0.8

3.1%

XXXX

line’s Big Lake Station and serves most rail 2.5% trips. Northstar trains primarily serve weekday commuters. 1.1% The number of Northstar train commuters St. Cloud Minneapolis/St. Paul also grew in 2013. Ridership reached 787,239 in Rochester 2013, a 12 percent increase. Last year’s ridership was the highest in the line’s four-year history.

4th quarter 1st Quarter J2nd Quarter F M A 3rdMQuarter J J

0.6

0.4

0.2

2nd Quarter 3rd Quarter A S O N D

0.0

-0.2 M JJ

D J FJ MA

F AS

M A M O NJ

M DJ

The St. Cloud Technical and Community College received $950,000 in grants from the Minnesota Department of Employment and Economic Development (DEED). The grants are part of DEED’s Minnesota Job Skills Partnership program and will be used to train hundreds of employees at WFSI Inc., New Flyer, and Talon Innovations in St. Cloud and Sauk Rapids.

Business Central Magazine •• MARCH/APRIL 2014

F J

STEARNS COUNTY BENTON AND STEARNS COUNTY - MONTHLY % C

School receives training grants

Sheriff ’s Foreclosure Auc Local Nonfarm Jobs Sheriff ’s Foreclosure Auctions STEARNS COUNTY 50

4.1%

4% $150k

3% For the fourth consecutive3%year, people hopped 2.5% $100k on board the Northstar Link Commuter Bus 2% 2% in record numbers to travel the Highway 10 $50k 1.1% 1% corridor between St. Cloud and Minneapolis. Link 1% ridership grew 9.4 percent in 2013, with a total 0 0% 0 ridership of 55,213. The Northstar Link Commuter Bus provides daily service to the Northstar Commuter Rail

-1.0 0 J F M A M J A S A D M J J F J M A A SM OJ NJ D

St. Cloud $30k Minneapolis/St. Paul Rochester

Sources: Tax Collections – City of St. Cloud Incorporations - MN Secretary of State, Graph courtesy of SCSU

LINKING UP

XXXX XXXX 0.4

-0.4

1.1%

0.6

0.2

$60k

$30k

N/A

Rochester

0.4

2012/13 QUARTERLYMINNESOTA % CHANGE IN REAL GDP 5% 5% $200k

1.0 0.8

0.8

$90k

$60k

Gross Domestic Product Median Housing Prices Gross Domestic Product 2012/13 QUARTERLY % CHANGE IN REAL GDP

UNITED STATES - MONTHLY % CHANGE STEARNS COUNTY UNITED STATES - MONTHLY % CHANGE 1.0

0.0

$50k Minneapolis/St. Paul

3rd Quarter 0S

0.2

St. Cloud

Housing/Real Estate sources: St. Cloud Area Association of Realtors, http://stcloudrealtors.com/pages/statistics; Benton County Sheriff’s Civil Process; Stearn’s County Sheriff’s Office; http://thething.mplsrealtor.com/

mestic Product

$100k

50 $30k

$50k $50k 10

XXXX XXXX X 0.6

= exceeds chart scale

$90k

0.4

$100k 100

100

$120k

0.6

$200k 20

0.8

$150k

$60k

1.1% 1%

$100k

0.8

$150k

$250k

$150k

10%

$150k

150

$300k

$150k

COUNTRY WIDE

ST. CLOUD

200

$350k

200 40

ST. CLOUD

$200k

$150k

$343,111

ST. CLOUD BENTON COUNTY

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J A

J S

A O

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ROCK SOLID Pat Alexander, Cold Spring Granite Company, remembers some dark days in the 1990s. Today the company is rebranding to Coldspring and expanding on its core competencies to ensure its future for another 115 years. BY GAIL IVERS // PHOTOS BY JOEL BUTKOWSKI, BUTKOWSKI DIGITAL IMAGING

Business Central Magazine •• MARCH/APRIL 2014

Tooling is making up a growing portion of Coldspring’s business.

sk Pat Alexander about his company and he’ll tell you about the people. “We have multi-generational families working in all of our locations,” he said. “We have employees who are third generation with the company. We have over 340 employees in the Chairman’s Club – that’s people who have worked here for 25 years or more. They have over 10,500 years of combined experience.” Alexander, CEO and chairman of the board of Coldspring, recently completed visits with Chairmen’s Club members at all of the company’s plants. “My dad said ‘You have to listen to your people. They’ll tell you what’s working and what isn’t if you’ll just listen.’ I think we’ve taken his advice seriously. Overall the most powerful thing our company has going for us are the people.” These days Alexander leaves the dayto-day operations up to his management team, but there are certain things he won’t relinquish. “I love the people. I’m proud of the Chairman’s Club and I like to meet with them. It used to be that the customer was number one. Take care of the customer. But we’ve come around to taking care of the people. Listen to them, respect them and they’ll take care of the company.” That’s a lesson he learned over a lifetime of working in the family granite company.

STARTING OUT

lexander was a typical kid. He wanted to spend his summers playing with friends and goofing off. But when he turned 13 his father told him it was time he learned how to do a good day’s work. The Alexanders owned what was then Cold Spring Granite Company and Pat started at the bottom. “My dad said ‘I don’t ever want you to ask someone to do something that you don’t know how hard it is.’ So there was lots of manual labor and lots of hard work,” Alexander said. He thinned brush around the quarries so the trees could grow. He worked in the quarries. He worked in the plants. “I did shipping, drafting, estimating. Dad wanted me to see it all.”

FUN FACT: Even though Coldspring has been known as a granite company only half of their business today comes from granite. The rest comes from the bronze foundry, diamond tooling, construction services, limestone, marble, sandstone and other stone materials.

BUSINESS PROFILE

Coldspring 17482 Granite West Rd Cold Spring, MN 56320-4578 PHONE: (320) 685-3621; (952) 449-4950 FAX: (320) 685-8490; (952) 449-9825 PUBLIC EMAIL: info@ coldspringusa.com WEBSITE:

www.coldspringusa.com

By the time he went to college he had mixed feelings about taking over the company. “In college I thought I wouldn’t go into the business,” Alexander said. He went to college in Austin, Texas working part time in their Marble Falls plant. What he discovered is that he liked the work more than he liked school. “What we did every day meant something,” Alexander said. “We were making customers happy. We were working with people.” That was the end of his doubts. Following graduation he moved back to Minnesota and started working in the Cold Spring plant. People are a common theme for Alexander. “People are the most interesting part of any business,” he said. “Put a team together and get them operating well…I enjoy that the most about being in business.” And he’s had plenty of opportunity to that, working his way through almost every department and division of the company. In 1973 Coldspring’s California operation went through a leadership transition. “They did pretty much everything we did in Cold Spring,” Alexander said, “but on a much

LEADERSHIP TEAM

Pat Alexander, CEO & Chairman of the Board John Mattke, President & COO George Schnepf, CFO Greg Flint, VP of Operations Dan Rea, VP of Building Material Division Mac Cariveau, VP of Memorial Division OWNERSHIP:

The Alexander Family

BUSINESS DESCRIPTION:

From natural stone and bronze to industrial and diamond tooling products and construction services, Coldspring has been serving the architectural, memorial, residential and industrial markets for more than 115 years. MINNESOTA BASED EMPLOYEES: 700 TOTAL NUMBER OF EMPLOYEES: 900 2013 SALES: $175 million

M A R C H / A P R I L 2 0 1 4 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

“I think people think mining companies don’t care about the environment, but we do. I consider myself an environmentalist.” – Pat Alexander smaller scale.” The site had two quarries and about 80 employees. “I asked Dad if I could do that job.” Alexander refers to it as his biggest learning opportunity. “There was a lot of anonymity to it,” he said. “It was 2000 miles away – and you didn’t have instant connections then like you do today. That gave me a lot of independence. It was the best way to learn the business. I could see clearly what we wanted to do with each product line. It was working with people, and getting the right people in the right jobs.”

BOOM AND BUST

n the late 1970s the AT&T Building in New York went up. It was built using a lot of granite and it received significant publicity. Suddenly, every architect in the country wanted to build with granite, Alexander recalled. “We had a boom you would not believe. One of my sales people showed me a four inch stack of call-back notes from companies that wanted granite. He couldn’t keep up with the calls.” The growing pains were amazing, according to Alexander. They started hiring employees as fast as they could. They opened offices in St. Cloud, Minneapolis, and Austin, Texas. One customer said it looked like they were going to knock down entire cities and rebuild them in granite. At one point Coldspring was producing the equivalent of two 15-story towers a week. “And we only had about 30 percent of the market,” Alexander said. But the growth wasn’t without concerns. “Back then we had 11 different product categories. In the back of my mind I didn’t like that we were becoming so dependent on just one. We took out long-term leases in St. Cloud, Minneapolis, and Austin. I worried about those leases, but I didn’t worry enough. It was crazy, so you think maybe this will go on. But, of course, it didn’t. It’s just as bad 38

to grow really fast as to shrink really fast. We did both because it stopped suddenly after 15 years.” The Savings & Loan scandal hit. Tax laws changed. And the market realized that office space was incredibly over-built. “Our sales dropped two-thirds in one year,” Alexander said. Between 1989 and 1991 the company reduced its size by half. “We had this huge backlog of work that we had to produce. But we couldn’t get any new work. So we’d finish a job and do layoffs. Six months later we’d finish another job and have to do another lay-off.” At their peak they had 2250 employees. The company cut everywhere they could. Their lenders became concerned. The office space with the long-term leases stood empty, but the rent still had to be paid. There were more layoffs. “For us it was like a depression. When you lose twothirds of your business, it’s a depression,” Alexander said. “You do two or three lay-offs and when you look into the faces of your people you know they’re thinking, ‘Man, this ship is sinking.’ The odd thing was that the rest of St. Cloud was doing well. It was like we were having our own, private recession.” The company shifted gears to their other product lines and focused more on memorial work. After losing money for two years, they finally started digging out. “The toughest thing I’ve ever done was accept that we were going to do layoffs,” Alexander said. “We had to cut the company in half. We had historically been a company that didn’t do layoffs of any size.” Thinking back Alexander still shakes his head with regret, but he has become philosophical. “Out of the toughest things that happen, good things will happen if you stick with it,” he said. “All of our Chairman’s Club members went through that time with us. They understand what it’s like to grow too fast. They know you have to think about what you spend money on and how you spend it. We’re

Business Central Magazine •• MARCH/APRIL 2014

PERSONAL PROFILE

Pat Alexander CEO & Chairman of the Board, Coldspring, Inc. AGE: 66 HOMETOWN: Cold Spring, MN EDUCATION: Bachelor of Arts in business from St. Edward’s University, Austin, TX WORK HISTORY: Cold Spring Granite since age 13 FAMILY: Wife, two daughters and five grandchildren HOBBIES: Hunting, fishing, hiking, boating, biking, golfing, and traveling

ADVICE TO A WOULD-BE ENTREPRENEUR: Line up at

least five times the amount of capital you think you are going to need. BEST ADVICE YOU’VE RECEIVED AND WHO GAVE IT TO YOU: “Listen to our

people. They will tell you what is working and what is not working.” From my father, John Alexander.

FUN FACT:

IF ALL THE STONE PRODUCED BY COLDSPRING WAS MADE INTO A SIDEWALK, IT WOULD GO AROUND THE WORLD ONE AND A HALF TIMES.

a stronger, better company because of it, but I wouldn’t let that happen again. And neither will any of the other employees who went through it.”

COLDSPRING

oday the company is rebranding from Cold Spring Granite, to Coldspring. They are hoping to eliminate the “product silos” that they have worked out of for years and present a multi-faceted company to their clients. Currently they have four initiatives: Cemetery development, diamond tooling, growing their existing product line, and what they call the 2020 Initiative. “We’re taking our existing reputation in the memorial business and letting the folks who run cemeteries know that anything they want to build at their cemetery – buildings, maintenance office, crematoriums – we can do that,” Alexander said. “And we can still do anything you want in granite.” The diamond tooling reaches back to their entrepreneurial roots. From the beginning they have always built their own machinery. “It came out of the war effort,” Alexander said, “so we had everything we needed to build equipment. We were an industry leader with what we made. We’d been such an industry leader we forgot to look around.” Early on Alexander took a trip to Europe to study the granite industry. There he found that Italy and Spain were using equipment from companies that did nothing but build machinery. “It was a real eyeopener,” he said. “They could do so much more than us. I’ll give you an example. With our best polisher we could do nine inches a minute. These other companies were doing two feet a minute. And it was that way with every kind of machinery – slabbing, jointing, stone handling…” One of Alexander’s first initiatives when he took over as president in 1983 was to modernize the company, and that meant buying equipment. “Yes, we could have made it ourselves, but should we?” Alexander said. “We would have had a learning curve and in the end we’d have had one machine. We spent many millions of dollars on new equipment and on

Top: Monumental production, early 1900s Above Left: A ship’s hull takes shape, early 1940s. Right: The Rockville Quarry, 1950s. Below: Polishing line in the technology center

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TIMELINE

1880

Henry Alexander, a 32 year old Scottish stone-cutter, arrives in America.

1929  Cold Spring Granite owns four granite quarries and posts record sales of $1.3 million. 1931  The Great Depression arrives: Chicago office closes, revenues fall for the first time.

1976  John Alexander dies at 78.

1886  Henry Alexander marries Maggie Milne. They settle in Rockville, Minnesota and have six children.

1980  The company has 1,250 employees and 20 quarries; sales are $50 million.

1890  Henry and seven partners form the Rockville Granite Company.

1983

1898  Henry buys out his partners and becomes sole owner. 1913  Henry Alexander dies; his wife Maggie and son, Pat H., take over the business. 1917 Maggie Alexander dies; Pat H. leaves to fight in WWI; Maggie’s son, John, returns from college to carry on the business. 

1920 

John and Pat H. Alexander relocate the company to Cold Spring.

1942 Acquisition: The John Clark Granite Company in Rockville; Cold Spring Granite begins building ship components for WWII. 1948  Pat H. Alexander dies at 57; John Alexander becomes the company’s president. 1950-58  Acquisitions: Granite Mountain, Marble Falls, TX; Pyramid Granite Works, Royal Granite and Melrose Granite, St. Cloud; Raymond Granite Company, Raymond, CA; Lake Placid Granite, Au Sable Forks, NY. 1951-52  The company returns to war work during the Korean conflict.

1921  Acquisition: the Diamond Pink® quarry. 1924  The company name changes to Cold Spring Granite Company. 1927 John Alexander opens a Chicago sales office to pursue more monumental business. 

1968  Tom Alexander, Pat H.’s son, becomes president; John Alexander becomes chairman of the board.

1954

Business Central Magazine •• MARCH/APRIL 2014

1953  Cold Spring Granite enters the bronze business with Granit Bronz, supplying markers for memorial parks opening across the country.

Tom Alexander retires; Patrick D. Alexander, John’s son, becomes president and begins rebuilding the company with new technology to make it more competitive.

1985  Acquisition: red granite quarry in Fredericksburg, TX. 1987  The new Granite West plant, designed for mass production of thin granite for building products, opens. 1988  Acquisition: Capitol Marble and Granite Company, Granite Shoals, Texas. 1996  A second manufacturing facility for monument production opens next to the Granite West plant. Pat Alexander becomes chairman and CEO naming Patrick J. Mitchell president and COO. 1998  The first phase of a new foundry for finishing bronze memorials is completed on the west campus.

2000 Opening of Mesabi Black® and Lake Superior Green® quarries. 

2002  Second phase of new foundry is completed in December. 2004  Pat Mitchell retires and John Mattke becomes president and COO. 2004  Cold Spring Granite makes an investment in Granite Tops, Inc. with a plan to make a full acquisition over time.

Rockville quarry drilling in 2006

2006  Cold Spring Granite expands into limestone with the introduction of Kasota Valley® Limestone.

2007

 The company moves into a new LEED Gold certified office headquarters west of Cold Spring.

2011-12  Expansion into limestone, sandstone and other resource alternatives continues; Echo Lake quarry opens.

2013

The strategic re-branding of Cold Spring Granite to Coldspring begins. The company has 900 employees, 35 quarries, and $175 million in sales.

rebuilding the company and we were able to do it because the market was so hot.” Though they don’t make the machinery anymore, they do make most of their own tooling which they also sell to other industries. Sales of diamond tooling are a growing portion of the company’s sales and Alexander expects that to continue. The company started a bronze foundry in 1953, establishing the Granit Bronz division. Cemeteries were moving away from monuments and headstones, to bronze plaques. Coldspring entered the bronze market to maintain their market share, and because it was another way to sell granite. “That’s an example of one of our product lines,” Alexander said. “We want to develop new lines that complement our core competencies.” It’s also an example of the silos they hope to eliminate. “Instead of selling Granit Bronz to the cemeteries, we’re selling one company – Coldspring. We can sell you whatever you need – a building, a monument, a bronze marker.” It isn’t that they want to stop being a granite company, Alexander said firmly. “We’ve learned to be an extremely good granite company – one of the best in the world. It just makes sense to develop other things – like the bronze business. This move has everything to do with the security and stability of our company…and nothing to do with the granite industry. We’re using our expertise and core competencies – handling big, heavy stuff – to ensure the future of Coldspring.” The fourth strategic focus is what the company calls its 2020 Initiative. Their goal is to use everything they take out of the ground by the year 2020. There is a lot of waste when you quarry granite. “I think people think mining companies don’t care about the environment, but we do,” Alexander said. “I consider myself an environmentalist. Almost everything I do for leisure and recreation is outdoors. The best times of my life have been spent on the property around our quarries hunting, fishing, and hiking.” Further proof can be found at the company’s new location west of Cold Spring where premium parking

spaces are reserved for “emission-free” vehicles and offices are equipped with recycling baskets.

THE NEXT GENERATION

lexander doesn’t think much about retirement. He’s more concerned about ensuring that the fourth generation of owners cares about the company as something more than a financial investment. “We just had a meeting with the next generation,” he said. “I don’t know if any of them will be in the business and I haven’t made it a priority. They’re all working and successful.” Still, he and his sisters have made an effort to help that next generation understand the culture, the history and the values of Coldspring. “We want them to be good owners,” Alexander said. “Otherwise it’s just an investment and then they would probably want to sell it. I don’t want to see it sold. My sisters don’t want to see it sold. We’re still here after 116 years and we want it to stay that way.” So Alexander and the Coldspring leadership team talk to the next generation about the strategic plan, new company initiatives, and the people. Mostly the people. “I tell them about the Chairman’s Club, and the industriousness and innovativeness of our people, and the generations of family members who have worked here.” A survey of the next generation shows they’re excited about the company and the direction it’s headed, according to Alexander. He could say the same thing about himself. Though he’s turned the day-today operations over to others, Alexander still knows what’s going on. He still visits the plants. He still spends time with the Chairman’s Club members. “I still enjoy the work,” Alexander said. “I’ve been fortunate to be a part of it. I’ve enjoyed the heck out of the whole deal.”BC Gail Ivers is the vice president of the St. Cloud Area Chamber of Commerce and managing editor of Business Central Magazine.

F O R T H E C O M P L E T E T I M E L I N E , V I S I T W W W. B U S I N E S S C E N T R A L M AG A Z I N E . C O M

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Luigi Donne owner of La Pasta di Aldo Macerata

Attaching lace to a dress at Francesca

PASSION Entrepreneurs the world over are passionate about their craft. BY GAIL IVERS

Making handbeaded lace at Francesca

Alfredo Marangoni, of Marangoni Chocolates

The Idea...

About a year ago, St. Cloud State University approached the Chamber with the idea of traveling together to Macerata, Italy. Since 2010 SCSU has had a contractual relationship with the University of Macerata that involved study abroad and faculty exchange programs. The agreement has been facilitated by Christine Imbra, SCSU professor of higher education administration, and the University of Macerata’s Paola Nicolini, vice president for orientation and tutoring. In 2012 a second contract between the two institutions expanded the relationship to include student internships, and seminars, workshops and courses. But this is just a small part of Imbra and Nicolini’s vision. Their goal is much broader and involves relationships and partnerships among higher education, city government, and business. That’s where we come in. Certainly the St. Cloud Area Chamber can help draw businesses into the loop for student and faculty internships. But what about an economic relationship with businesses – entrepreneurs – in Macerata? The best way to find out, Imbra argued, was for us to make the trip to Italy. We agreed. In October 2013 Chamber President Teresa Bohnen and I, along with Imbra and SCSU Dean of the Herberger Business School Diana Lawson, spent six days in Macerata touring businesses, meeting with community leaders, and exploring this ancient town built on top a mountain. Both the president of the university, Luigi Lacche, and the mayor of Macerata, Romano Carancini, made time in their schedules to meet and welcome us. Both heartily endorsed an expanded economic partnership and expressed interest in visiting St. Cloud. We spent an extended visit with the Macerata Chamber of Commerce. Chambers in Italy are similar in name only to chambers in the U.S. To do business in Italy you must be licensed by the state and the licensing agency is the chamber of commerce. Therefore if you are a business, you must join the chamber.

The focus of the chamber becomes much more regionally programmatic. The Macerata Chamber has a series of major initiatives including a focus on early childhood education. They also are working to promote the wines of the region. They have a large showroom and training center, separate from their office, where their staff sommelier hosts wine tastings and seminars. As we discussed possible partnerships, it was clear that we in St. Cloud have much greater flexibility in developing programming. Lorenza Natali, hief operating officer for the Macerata Chamber, expressed enthusiasm for the ideas, reservations about execution, and optimism for finding common ground.

The People... Far and away the most interesting part of the trip for me is what I like most in St. Cloud: visiting businesses. With Nicolini as our guide, translator, and chauffer, we had the opportunity to meet six entrepreneurs. Some spoke English, most did not. But it didn’t matter because passion is a universal language. As a seamstress and embroidery aficionado, my personal favorite was Le Spose di Francesca (Brides of Francesca), where they make custom wedding dresses by hand. Brides select a picture or pattern, they are measured at Francesca’s, then the dress and all of its embellishments – satin roses, veil, lace – are made by hand. It takes as little as a week to create the dress and on average costs about $1500 if you order it directly from Francesca. If you order it from a bridal shop, the

MAKING CONNECTIONS

Chamber President Teresa Bohnen (L) discusses possible partnerships with Lorenza Natali, chief operating officer of the Macerata Chamber of Commerce.

HAND MADE

Anna Maria Dichiara, owners of Le Spose Di Francesca, with Bohnen

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FEATURE PROFIT

INNOVATING

Yvonne Roe (L) owner of the design firm Ivory, Bohnen, and Luigi Mandolini, owner of engineering and innovation company MAC

same dress will cost about $5000. (For those of you who have a bride-to-be in the family, you could fly to Macerata, order the dress at Francesca, tour Italy for a week, and bring the dress home for less than $5000. Think about it.) The detail, creativity, and skill of the owners and workers were that of an artist. I would be happy just to own a piece of the custom lace. Everyone we met at Francesca and the other businesses couldn’t talk fast enough or share enough information with us. Nicolini kept asking them to slow down, or stop, so she could translate. It reminded me of our own business owners who sincerely want their guests to understand how interesting their work is and how hard they try to be

innovative and please their customers. We also learned that the problems of business owners are the same the world over: government regulations, taxes, uncertainty, employees, distributors…. We felt completely at home among our Italian small business hosts!

The Future.... Throughout our trip Bohnen and I talked about how we would apply what we were learning to our own programming. Certainly internships are an area we’d like to develop. The Chamber already has an internship program for underserved youth. Now we’d like to look at helping connect our members with graduate students from Italy. Fine arts, human resources, translation, business plan

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Business Central Magazine •• MARCH/APRIL 2014

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development, and technology are all areas where visiting Macerata students can help businesses in Central Minn. We’re also looking forward to a visit from a delegation from Macerata in the spring. Mayor Carancini and vineyard owner Benedetta Lucangeli have indicated to Nicolini that they might join her when she brings her students to St. Cloud. This time we will serve as hosts and introduce them to some of our local entrepreneurs. And if there is enough interest, we will look at leading a business exchange to Italy in 2015 or 2016. Such visits are the first step in an on-going business relationship. If you would like to learn more about doing business in Italy, hosting a student intern, or participating in a business exchange, please let me know. When you stand on the hills of Macerata the world looks like a very large place. When you shake the hand of a new friend, you realize it’s not. BC

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Gail Ivers is vice president of the St. Cloud Area Chamber of Commerce and managing editor of Business Central Magazine.

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FEATURE PROFIT

WESTWARD–HO! Roughly 400 miles away from the epicenter of the North Dakota oil boom, St. Cloud businesses are feeling the ripples of an economic earthquake that is transforming life west of Bismarck. BY LAWRENCE SCHUMACHER

Business Central Magazine •• MARCH/APRIL 2014

orth Dakota led the nation in job creation in 2012 and has an unemployment rate below 3 percent – the nation’s lowest. A Minneapolis Federal Reserve Bank study released this summer shows a correlation between lower unemployment rates and the 18,000-square mile Bakken Oil Formation encompassing parts of North Dakota, South Dakota, Montana and Canada. Since the global jump in oil prices in 2005, drilling in the shale oil fields has transformed North Dakota into the number two oil-producing state in America, surpassing Alaska and behind only Texas. What does all that mean for Central Minnesota? “It’s creating jobs back here and allowing people to keep our economy going through some rough times,” said Al Haus, owner of Al’s Ornamental Iron. His company has worked with local contractors on several apartment construction jobs in North Dakota. Workers have flocked to the 12 North Dakota counties at the epicenter of the boom to drill for the estimated 7.4 billion barrels of undiscovered oil below. Despite average wages that are 30 percent higher than in St. Cloud, companies from areas including Central Minnesota have followed. Along the way, they have found opportunities and profit, but also logistical challenges and difficulties. “It has always been a challenge to get all the necessary equipment and some of the employees’ vehicles out there,”

“

Housing is very limited. If you can find a hotel room at all, you are very lucky, but if you do find one, you’re unlucky because the price is so outrageous.

said Krystal Vierkant, owner of Rock On Companies, which has done trucking on road construction projects in North Dakota. “Housing is very limited. If you can find a hotel room at all, you are very lucky, but if you do find one, you’re unlucky because the price is so outrageous.”

OPPORTUNITIES With 120 retail locations, Coborn’s, Inc. already had a presence in North Dakota, with Cash Wise mega-grocery stores in Fargo and Bismarck and a Coborn’s in Jamestown, said Rebecca Kurowski, the company’s communications manager. But much of the company’s growth has focused on North Dakota in recent years, as Coborn’s signed a partnership with North Dakota-based JK Foods, purchased several liquor stores, and recently opened new stores in Minot and Watford City, she said. The existing small stores in Stanley and Tioga will soon be moving into the new Cash Wise stores in their communities, adding significant increases in square footage and services. Plans for a new Cash Wise in Dickinson are also boosting the company’s presence in a growing market, Kurowski said. “There’s such a need for food supply out there now,” she said. “We did a lot of

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research prior to any growth to see what the true needs were pre-boom and where they might be post-boom, and we believe our supermarket model fits what these communities need, now and in the future.” Replacing the mom-and-pop grocery stores that once dominated the North Dakota landscape with stores that sell produce and meats, but also hardware, liquor, videos, and more gives the company a good, longterm presence, Kurowski said. Mark Geller began seeing ripples from the oil boom in 2012, as his company, High Impact Training, received more contracts to do customized training programs in public and private colleges and universities in the area. “Before that, we’d done some programs off and on there, but we didn’t really pay close attention to North Dakota,” he said. “Now, we keep our eyes on what’s going on there.” Funding for High Impact Training’s work with college students and professional staff relies largely on legislative allocations to North Dakota’s colleges and universities, which have been tight until recently, Geller said. But enrollment has increased substantially, and 2014 looks to be a year when the legislature opens up the purse strings a little bit more, he said.

IMPACT For Al’s Ornamental Iron, the last few years have meant steady work for Haus’ team in North Dakota, largely in Williston, working for local companies such as Lumber One and Miller Architects & Builders. Vierkant’s company began seeing work related to the oil boom when North

Coborn’s breaks ground on a new grocery store in Watford City, North Dakota

M A R C H / A P R I L 2 0 1 4 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

FEATURE PROFIT

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It can be almost impossible to hire and retain qualified staff, even when paying them much higher wages than comparable employees here.

Dakota realized that its roads needed to be fixed from the constant wear and tear of truck traffic, which accounts for almost 40 percent of road traffic in the state. Lawmakers released $600 million for infrastructure in 2012, and Rock On Companies has increased its sales and work as a result, she said. That has translated to steady work for 15-20 St. Cloud employees, Vierkant said, though they have to travel to North Dakota for two to three weeks at a time. Haus said he has added a couple positions because of the steady work in North Dakota, which he expects to continue for some time. “It depends on how long they keep building apartments out there,” he said. “But most people guess that will be five or 10 years.” High Impact Training hasn’t made any substantial changes to staffing or resource allocation as a result of the oil boom because it’s too soon to tell if the state’s investment in higher education will be long-term, he said. But with an increasing population – North Dakota’s population is currently growing five times faster than

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the national average – there may be more demand on colleges and universities for some time, and more opportunity for contracts there, he said. In addition to new hires in North Dakota, Coborn’s has added staff in St. Cloud at the distribution center, as well as contracting with local companies for additional supplies and distribution, Kurowski said. “We’re sending trucks out to North Dakota six days a week now, instead of two. It’s a steady flow.” The company is also preparing to break ground on a new corporate headquarters on the south end of St. Cloud this spring, allowing it to consolidate disparate offices in one building. It’s not a direct result of increased North Dakota operations, Kurowski said, but it is a result of a growing company.

CHALLENGES North Dakota’s strong economy hasn’t come without a cost. Housing west of Bismarck is still in short supply and priced far above comparable St. Cloud rents and market values, said Geller, a Fargo native.

Business Central Magazine •• MARCH/APRIL 2014

Rock On Companies built bunk houses for their employees to sleep in while on the job to offset those costs, Vierkant said. It can be almost impossible to hire and retain qualified staff, even when paying them much higher wages than comparable employees here, Kurowski said. “A large pay differential has to be added on, just to compete with the other service industries,” she said. “And the turnover is much higher than we experience here. It can be a challenge to maintain the level of customer service we specialize in offering at our stores.” The state also found itself number one in an unwanted category in 2013 – the most dangerous state in the country to work in, according to an AFL-CIO labor study. North Dakota had an on-the-job fatality rate of more than 12 per 100,000 workers. But the extra costs of working in North Dakota – including significant time away from families and homes – is more than made up for by the benefits, Haus said. “Travel, housing, it all gets included in the bid process,” he said. “Conditions are getting better out there, and our guys get to be home for two or three weeks after they come back. It’s good, steady work.” BC Larry Schumacher is the creator and owner of Wordbender Communications, LLC, a communications consulting and freelance writing firm. He lives in St. Cloud with his wife and two children.

SMART BUSINESS: MILLER ARCHITECTS & BUILDERS

Miller Architects & Builders Keeping busy in the Bakken

uch to do . . . St. Cloud’s Miller Architects & Builders has been busy in the Bakken. And if the oil doesn’t tap out in the formation, the St. Cloud design/builder will sustain its activities in the Williston Basin for a bit longer. “The activity in the Bakken has been good for us,” says company President Joe Seifert. “We see this continuing in the future, possibly, four to five years.” Yes, waves of change are washing over the fields in a

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