May 2024 Elevate Magazine | Rapid City, South Dakota

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BY SHILOH FRANCIS

Dan

BY MICHELLE PAWELSKI

MANUFACTURING

FOR THE WIN

With all the headlines coming out of Silicon Valley these days you’d assume the American economy was dominated by technology, finance, and professional services.

But you’d be wrong. Manufacturing still matters. Don’t count manufacturing out.

To be sure—the manufacturing sector represents a much smaller percentage of the workforce than it did in the mid-20th century when it was almost 30% of the workforce. Today, it represents about 9%. However, because of automation and efficiency, the sector has become more productive. In fact, manufacturing represents almost $3 trillion of the US GDP, only bested by professional/business services and real estate.

Over the last year alone, there were over 7 million job postings for manufacturing jobs in the US with a median advertised salary of over $61,000. Almost 7,500 of them came from South Dakota.

Manufacturing has always been a crowd favorite of economic developers everywhere. That’s because primary jobs—jobs in which a product or service gets exported out of the region—bring in new money to the local regional economy. And this increases the size of the economic pie for all. The purest form of primary jobs? You guessed it: manufacturing.

Many manufacturers aren’t what you are thinking. They aren’t massive behemoths like Boeing or Siemens or Ford. They are small manufacturers, unique manufacturers, and manufacturers who are just downright cool.

Welcome to this issue of Elevate, where we look at a few of our own small, unique, and cool manufacturers— all located right here in the Black Hills. There’s the story of veteran Dan Smith, who parlayed a love of toys from childhood into the largest rubber band gun manufacturer in the United States. And then there’s the story of Adam Martinez, who manufactures wine—also known as winemaking for those who want to get fancy. And finally, we’re letting you in on Rapid City’s newest association of manufacturers, whose job it is to ensure manufacturing in Rapid City is alive and well for many years to come.

We hope you enjoy these stories as much as we did writing (or manufacturing) them!

Tom Johnson, President & CEO

Elevate is a monthly publication produced by Elevate Rapid City. It is the premier business magazine for the Black Hills region telling the stories that make our area unique and vibrant.

PO Box 747, Rapid City, SD 57709 605.343.1744 elevaterapidcity.com

PRESIDENT & CEO

Tom Johnson

SENIOR COMMUNITY DEVELOPMENT & PARTNERSHIPS

DIRECTOR

Taylor Davis

SENIOR MARKETING & COMMUNICATIONS DIRE CTOR

Shiloh Francis

SENIOR ECONOMIC DEVELOPMENT DIRECTOR

Lori Frederick

SENIOR PUBLIC POLICY DIRECTOR

Garth Wadsworth

OPERATIONS DIRECTOR

Liz Highland

EVENTS & MARKETING DIRECTOR

Rachel Nelson

WORKFORCE & EQUITY DIRECTOR

Reese Niu

HOUSING & COMMUNITY DEVELOPMENT MANAGER

Laura Jones

EMPLOYER ENGAGEMENT MANAGER

Alyssa Larkey

INNOVATION & ENTREPRENEURSHIP MANAGER

Dillon Matuska

ECOSYSTEM SUPPORT & PROPERTY MANAGER

Loni Reichert

BUSINESS DEVELOPMENT MANAGER

Kallie Ruland

INVESTOR RELATIONS MANAGER

Jason Wittenberg

EVENTS & MARKETING COORDINATOR

Maddie Bazala

DIGITAL CONTENT COORDINATOR

Sydney Riendeau

EXECUTIVE

ADMINISTRATIVE ASSISTANT

Ashley Simonson

RESEARCH & DATA COORDINATOR

Karissa Ellis

DESIGN AND LAYOUT

Bailey Sadowsky

Shadow Sky Creative Co.

PRINTED BY SIMPSONS PRINTING

events

MAY 2

Critical Issues Luncheon | Rapid City Through Young Professionals' Eyes elevaterapidcity.com/events

MAY 2

Preservation Thursday: Boozers, Brothels, and Bare Knuckle Brawlers Homestake Adams Research and Cultural Center, Deadwood blackhillsbadlands.com/events

MAY 3

THE BEATNUTS Golden Era Tour Creative Arts Building rapidcityjournal.com/events

MAY 3-5

Naja Shrine Circus 2024 The Monument themonument.live/events

MAY 3-19

Black Hills Community Theater www.bhct.org/alabama-story

MAY 4

Black Hills Farmers Market 245 E. Omaha St. blackhillsfarmersmarket.org

MAY 4

Stereotrip 707 Mountain View Rd. thepark707.com/event

MAY 5

Pancake Breakfast Veterans of Foreign Wars Post 1273 Rapid City rapidcityjournal.com/events

MAY 7

Airman of Note Historic Theater performingartsrc.org/events

MAY 10

Jessica Loobey The Loud American, Sturgis loudamericansturgis.com/event

MAY 11

Black Hills Farmers Market 245 E. Omaha St. blackhillsfarmersmarket.org

MAY 11

StardustFest

The Deadwood Mountain Grand stardustfest.com

AIRMEN OF NOTE

PANCAKE BREAKFAST

MAY 11

Shrine of Democracy Chorus Performing Arts Center shrineofdemocracychorus.org

MAY 15

Josh Turner The Monument themonument.live/events

MAY 17

Deadwood’s Craft Beer Fest Hops and Hogs Deadwood Welcome Center deadwood.com/event

MAY 18

Black Hills Farmers Market 245 E. Omaha St. blackhillsfarmersmarket.org

MAY 18

Kids to Parks Day National Parks parktrust.org/kids-to-parks-day/

MAY 19

Teacher Trot 5K & Kids Fun Run Raider Park myfunrun.com/chm5k

DOWNTOWN FOUNTAINS

MAY 22

Chris Stapleton The Monument themonument.live/events

MAY 24

Fountains Opening Day Main Street Square mainstreetsquare.org/calendar

MAY 24

Evening Lighting Ceremony Mount Rushmore, Keystone blackhillsbadlands.com/events

MAY 26

Back When They Bucked Days of '76 Areana, Deadwood backwhentheybucked.org

MAY 29

Music On Main

Harley Davidson Rally Point, Sturgis officialsturgisevents.com

MAY 30

Brandon Jones at Summer Nights Downtown Rapid City rapidcitysummernights.com

FARMERS MARKET

BRANDON JONES

Manufa

introducing

the rapid city manufacturing alliance partner

STORY BY SHILOH FRANCIS // PHOTOS SUBMITTED

cturing

ships

Building something from essentially nothing is something manufacturers do each and every day. Sometimes the process begins with raw materials. Other times it is various components later to be assembled. And other times, it’s taking source ingredients and transforming them into something new – like your favorite wine or beer.

Throughout the Black Hills region, more than 100 businesses are doing just that. The total value of the goods and services

they produce totals over $550M.

But this can sometimes be a lonely, complicated process. Finding the right resources in the supply chain is not only complicated but can also add time for projects if they need to import from other countries.

Like many businesses, manufacturers also struggle with finding opportunities for finding workforce and then further development and skills training support.

Realizing there is power in community and collaboration, a new initiative has begun: the Rapid City Manufacturing Alliance. The goal of this group is to promote growth, innovation, and sustain-

ability within the manufacturing sector.

Kenton Brannon is the Executive Technical Director of Procurement & Logistics at Pete Lien & Sons. He has also stepped in as the inaugural chair of the Manufacturing Alliance. He has already found the Rapid City Manufacturing Alliance to be a worthy cause.

“It was pleasantly surprising to learn of the available partners located within our region. Due directly to this alliance, we have also learned of development programs provided by the state of South Dakota which we were previously unaware of. I foresee a strong future for this alliance and Pete Lien & Sons is delighted to be involved.”

The group meets regularly to discuss issues relevant to the industry. They also work to identify opportunities for workforce development and skills training to support the needs of manufacturers in the region. Rob Hrabe, CEO of VRC Metal Systems shared that “the Manufacturing Alliance provides a much-needed forum to tackle common problems that many manufacturers in Western SD have such as capitalization, employee recruitment and retention, economic development incentives and many other helpful topics.” More than that, it has strengthened his company’s current growth and potential for the future. As the group continues to grow, so will the access to resources. By understanding one another’s capabilities, local businesses will be able to supply products to on another on a local level rather than importing outside the region. This improves the efficiency of the supply chain, boosts the local economy, and allows our businesses to shortcut the guess work and do more of what they love: making something from nothing and getting it into the hands of their customers. •

Elevate took a position on 18 bills during the 2024 Legislative Session community. This pro-business scorecard reflects the voting record

Elevate took a position on 18 bills during the 2024 Legislative Session community. This pro-business scorecard reflects the voting record

APPROPRIATIONS

APPROPRIATIONS

Rep. Dennis Krull (30)

Rep. Dennis Krull (30)

Rep. Kristin Conzet (32)*

Rep. Kristin Conzet (32)*

Rep. Steve Duffy (32)

Rep. Steve Duffy (32)

Rep. Becky Drury (34)

Rep. Becky Drury (34)

Rep. Mike Derby (34)

Rep. Mike Derby (34)

Sen. Helene Duhamel (32)

Sen. Helene Duhamel (32)

Sen. Mike Walsh (35)*

Sen. Mike Walsh (35)*

Sen. David Johnson (33)

Sen. David Johnson (33)

Rep. Trish Ladner (30)

Rep. Trish Ladner (30)

Rep. Curt Massie (33)

Rep. Curt Massie (33)

Rep. Phil Jensen (33)

Rep. Phil Jensen (33)

Rep. Tina Mulally (35)

Rep. Tina Mulally (35)

Rep. Tony Randolph (35)

Rep. Tony Randolph (35)

Sen. Julie Frye-Mueller (30)

Sen. Julie Frye-Mueller (30)

*Rep. Kristin Conzet (32) and Sen. Mike Walsh (35) were appointed

*Rep. Kristin Conzet (32) and Sen. Mike Walsh (35) were appointed

WORKFORCE

an UNexpected

career

Dan Smith trades flying planes for shooting rubber bands

STORY BY MICHELLE PAWELSKI // PHOTO BY SHILOH FRANCIS

“I WAS STILL IN THE RESERVES. ONE DAY I WOULD BE FLYING AND THE NEXT DAY I WOULD BE HAWKING RUBBER BAND GUNS LIKE A CARNY WORKER.”

-Dan Smith

September 1991 was a life-changing time for Dan Smith.

Military cutbacks left the California-native and Air Force Reservist pilot scrambling to pay the mortgage on his new home and meet the basic needs for him and his wife.

“It was almost like getting fired,” Dan said of his 80 percent decrease in pay. “We had just bought a house four months prior. I had to come up with a way to make more money or lose my house.”

Dan’s entrepreneurial brain started to kick in, and his salvation came in the form of a century-old toy.

In the years prior, Dan started a side gig selling rubber band guns, a toy he enjoyed playing with as a child. “I had a few as a child and even made one or two back in the day, but I never grew up thinking I would sell rubber band guns as a living.”

However, nostalgia, and a new interest, flooded back during a gun show he attended in Pomona, Califiornia. A vendor showcased a product Dan had never tried before – a 12-shot, rapid fire, semi-automatic, repeating rubber band gun.

He was captivated.

“It was so fun!” The kid in him along with his business savvy prompted him to negotiate the purchase of several guns from the vendor right there on the spot, with a goal of reselling to friends and family.

“I took some to my squadron and sold them to my Air Force buddies,” he said. “I actually put them in my luggage when I was deployed to Saudia Arabia during Desert Storm and sold them to other military personnel in the compound where we were staying.”

With the loss of most of his income and a mortgage to pay, Dan turned to the rubber band guns. He already knew the toys sold well and thought it would bring in some quick cash to supplement his income. “I signed up for swap meets, market nights, street festivals, city celebrations, and more. I would sell them anywhere I could find a venue to sell in Southern California.”

Selling the toys was a way to make money while he figured out what he was going to do next. “I thought I would get

a different job or maybe go back to school.”

That was more than 30 years ago. Dan, now known as the rubber band gun guy, has made a successful career with the popular children’s toy. His company, Magnum Enterprises, LLC, is the nation’s leading seller and manufacturer of rubber band guns, along with other lines of unique wooden toys.

“As I sold more and more of these guns that I purchased from the manufacturer out of Arlington, Texas, they soon asked me to be their western states

distributor. They gave me all their accounts in the five western states and gave me a discount on wholesale if I bought in volume and would increase business in my territory.”

Dan held up his part of the agreement. He bought a bunch of product, built shelves and a packing table and started his own distributorship out of his Victorville, California garage. He operated there for the next 6 years.

“It was a weird time,” Dan said. “I was still in the Reserves. One day I would

"I wouldn’t be where I am today if I hadn’t become a manufacturer. It was scary, but becoming a manufacturer gave me all sorts of options."

- Dan Smith

be flying and the next day I would be hawking rubber band guns like a carny worker.”

Dan eventually left the Air Force Reserves and dedicated all his time to building his business –Magnum 12 Products which he changed to Magnum Enterprises, LLC after incorporating in 2001. He soon outgrew his garage and moved to a 1,200-square-foot warehouse space. During that time, Dan and his wife also began to assess their life in Victorville, a city less than 90 miles from Los Angeles. “Life was getting a less than desireable,” Dan said. “Clientele was getting worse, and crime was increasing.”

The couple was looking for a better environment to raise their three young sons. In 2004, despite Dan’s reluctance to move from his home state, the family packed up and moved to his wife’s home state of South Dakota. She was born and raised in Mobridge.

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For nearly a year, Dan was driving back and forth, 1,300 miles one way, to operate his California business. “I was getting stretched in both directions. It was a tough time and a lot of stress, but slowly I decided our family moving to South Dakota would be a permanent move.”

He decided it was time to also move Magnum Enterprises.

“It worked out well and was a godsend. Rapid City and South Dakota is not a perfect place, but it is a kinder, gentler place than Southern California.”

His family thrived in Rapid City, and so did his business.

“My business would have had a harder time surviving in California because of increased cost – everything is tougher there.”

Dan has increased his space from

2,500-square-feet to 11,000 and moved from being a distributor to a manufacturer. In 2006, one of his major suppliers out of Medford, Oregon, shut down and Dan purchased all the equipment. Then in 2007, his original manufacturer in Texas also shut down. This gave Dan the opportunity to purchase and acquire the company’s equipment, product line, and customer base.

“I wouldn’t be where I am today if I hadn’t become a manufacturer. It was scary, but becoming a manufacturer gave me all sorts of options. Gave me control. Gave me flexibility to produce what I wanted when I wanted and how much I wanted. I was able to increase my volume.” That all became even more crucial in 2020 during the Covid pandemic when Dan and his team were producing an average of 1,200 toys a day.

While things have slowed down slightly, they are still producing 600 – 800 toys daily. Dan’s space is filled with 10,000 – 30,000 pounds of colorful rubber bands, a variety of styles of guns from rifles and pistols to Ak-47s, swords and axes. The featured gun is the Jr. Devastator – a Civil Ware style gatling gun that can shoot 96 rubber bands in 6 seconds. And Dan is always looking to diversify his product line. He recently added the 1960s popular toy called the Arrowcopter. He sells to hobbyists, gift and souvenir shops, farm and fleet chain stores and convenience stores.

Although initially Dan thought these toys were just a fad, he now believes rubber band guns will ever go out of style. They have been around for over a century. Ever since there have been inner tubes in automobile tires, kids have been making rubber band guns, he said. “Rubber band guns are a timeless, classic American toys. They are as American as Chevrolets and apple pies.”

The toys also come with stories and memories. Decades of neighborhood rubber band wars; brothers ambushing their sisters; children pretending they were cowboys, cops, or robbers. While Dan has diversified and modernized

his products for newer generations, the same creativity and childhood play remain. No batteries, no lights, no screen, just a wooden gun, rubber band, and imagination.

“When I grew up, I never envisioned this is what I would be doing. I’ve always had the entrepreneurial spirit and dabbled in business a bit, but never though it would turn into a business of this scale.”

Dan is a hard worker. He is business man. He is an entrepreneur. But more than anything, he is a kid at heart.

Connect and learn more at

wine maker

STORY BY DOWNTOWN RAPID CITY // PHOTO BY BRI VANDE POL

Nestled

up to the legendary Firehouse Brewing Co. in Downtown Rapid City is the Firehouse Wine Cellars. Adam Martinez, head winemaker for Firehouse Wine Cellars, has been with the winery since they were established 10 years ago, in 2014. But Adam has been on the Firehouse team since he first arrived in Rapid City in 2011.

Adam, who has a background in chemistry, had never lived anywhere longer than two years prior to landing in Rapid City, “I actually didn’t move here intentionally, Rapid City was going to be a pit stop for the summer and then I had planned to move to the west coast.” After meeting his now wife and hitting his stride at the Firehouse, he decided this is where he

would start planting some roots. Adam worked his way up to be a manager at Firehouse and when they decided it was time to complement the brewery by adding a winery in 2014, he decided to put his chemistry know-how to use and started working in the lab running all the tests for the winery.

After working in the lab for a few years and getting some assistant winemaker experience, Adam found so much joy in his work that he felt he was ready to start taking the steps to become head winemaker of Firehouse Wine Cellars. He spent the next few years learning the winemaking process from front to back and by 2018 his hard work garnered him the head winemaker position. The winery has seen incredible growth since then. They’ve gone from being a 2,000 case négociant winery in a small facili-

ty to a 10,000+ case winery with award winning products made from scratch in a 13,000 square foot facility. Speaking of awards, one of the most memorable experiences during his winemaking career was when the first rosé Adam ever made by himself won best of show at the 2019 USA Wine Ratings.

Not only has the winery seen incredible growth in the past 10 years, but Adam himself says that becoming a winemaker has helped him grow as a person. He credits the lengthy process that it takes to make wine for making him a more patient person professionally as well as at home. Adam has also become more optimistic and is able to roll with the punches and adapt. “There’s a science to making wine

but a lot of it is up to mother nature and I just trust that she has more experience in life than I do. I don’t try to convince her to do what I want, I just listen and learn.”

When Adam talks about his passion for his craft, the excitement is contagious. He lights up when he talks about his favorite part of the winemaking process, “Fermentation of the wine is so fun; the grapes are there, you need to start measuring sugars, feeding the wine, getting the oxygen right. It’s a lot like the puppy stage for a dogit’s a lot of work and more complex at the beginning and then later on you get to see if you got it all right.”

You don’t need to be a sommelier to feel at home at Firehouse Wine Cellars, Adam just wants people to drink what they enjoy,

“There’s a science to making wine but a lot of it is up to mother nature and I just trust that she has more experience in life than I do. I don’t try to convince her to do what I want, I just listen and learn.”

- Adam Martinez

no matter what that is. “My least favorite question I get asked is ‘what is the best wine in the world?’. The best wine is the one you enjoy the most.” Adam encourages people to come down to the winery and experience the relaxed environment and to do a tasting. “We’ve got 30+ wines, I bet there is something you’re gonna like. And if not,” he laughs,“well we’ve got beer too.” Over the next

- Adam Martinez

10 years, Adam envisions there will be some evolution as grape regions start to change and how people's palettes are shifting. He would also love to be able to grow his own grapes and experiment more with small batch winemaking. •