MNVb March2016

Also in this issue• Better Housekeeping Vacuums

• WYSIWYG Juice Company

• Envision Lab

Imperial Plastics has 125 refugee employees, most from Somalia, working in their Mankato plant. Photo by Pat Christman

The Free PressMEDIA

Businesses benefit from diverse workforce

Melting pot

MNVB March p01.indd 1 2/17/2016 2:40:42 PM

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F E A T U R E SMarch 2016 • Volume 8, Issue 6

Kirk Marble went to work for Better Housekeeping Vacuums 40

years ago while he was in high school. Recently he was able to

purchase the business he’s spent his life at.

20Kristi Schuck and Marie Farley Christiansen are co-owners of

WYSIWYG in downtown Mankato, which specializes in cold-pressed

juice and organic foods and beverages.

18Katie Boone and Sara Nett have

overseen many changes at Envision Lab in Mankato, a place where

entrepreneurs find a collaborative and supportive atmosphere.

22

Many businesses aim for more diversity and with a tight local labor market an untapped pool of employees awaits,

particularly among the many refugee families in the area.

14



PUBLISHER

EXECUTIVE EDITOR

ASSOCIATE EDITOR

CONTRIBUTINGWRITERS

PHOTOGRAPHERs

COVER PHOTO

PAGE DESIGNER

ADVERTISING SALES

ADVERTISINGASSISTANT

ADVERTISINGDESIGNERS

CIRCULATIONDIRECTOR

John Elchert

Joe Spear

Tim Krohn

Tim KrohnKent ThiesseDean SwansonHeidi SampsonNell Musolf

Pat ChristmanDarren Gibbins

Pat Christman

Christina Sankey

Jen WanderscheidTheresa Haefner

Barb Wass

Sue HammarChristina Sankey

Denise Zernechel

MarCh 2016 • VOLUME 8, ISSUE 6

MN Valley Business is published by The Free Press Media monthly at

418 South 2nd Street., Mankato MN 56001.

For editorial inquiries, call Tim Krohn at 507-344-6383.

For advertising,call 344-6336, or e-mail

[email protected].

Diversity in workplace:An untapped asset

Diversity in the workplace has become an increasingly important issue in the Mankato

area as our population has become more diverse.

It makes sense to have a workforce that resembles the market.

A few years ago, The Free Press took on a project to tell the story of new immigrants to the Mankato community. Many were being seen but not heard.

It was important then to tell these stories that detailed the perils and struggles of refugees who had been forced out of their home countries hoping to make the best of a new life in the United States.

It’s a story that has been told from the origins of our country and repeats itself now almost daily with all the strife in the world.

Most of us wouldn’t know that refugees have been given a legal right to come to the U.S. It’s part of our country’s humanitarian efforts to offer shelter and refuge for people in countries around the world who face threats to their safety and the safety of their families.

And despite the anti-refugee, anti-immigrant rhetoric of some of our politicians, one of our greatest assets as a country is that we provide shelter and opportunity for people who have been oppressed elsewhere.

Many have come to make Mankato their home from war-torn countries like Somalia and Sudan. Many have faced tremendous struggles just to stay alive and are grateful to live in a country that offers freedom from oppression and rejects discrimination based on religion.

Our story this month also notes that many want to work and want jobs.

“People want to get jobs. They’re taking welfare and they want to get off it,” says Mohamed Abdulkadir, refugee program assistant with MRCI WorkSource. He has been working with businesses and refugees on employment issues and opportunities.

He has worked successfully with Imperial Plastics where about 125 refugees work. Ameripride, a laundry and linen service provider, also has

been working with Mankato area refugees for several years.

“I took a chance on it and it worked out well. I thought, and still do, that it’s an untapped resource in our community,” said Tom Blaido, production manager at Ameripride.

There are about 2,000 refugee families living in the Mankato area. That’s a sizeable opportunity for businesses. It represents a workforce that knows how to overcome adversity, and who want to work hard and provide a good life for their families.

It’s been almost five years since The Free Press undertook our refugee story project that ended with a community meeting with Minnesota Public Radio to hear from our new neighbors who were calling Mankato home. It was an enlightening meeting that we hope showed our new neighbors we cared about their presence and invited them to take a role as members who could build and improve our community.

These kinds of efforts by businesses, by the schools, the churches and the Greater Mankato Diversity Council have helped Mankato grow as a diverse community that has very little turmoil based on race, religion or refugee or immigrant status. The same cannot be said for other Minnesota communities.

Each year, I also make a presentation to newspaper editors from around the state on how The Free Press embraced its diversity with a journalism project and the community response that followed. The editors are sometimes from very small towns with very little diversity. Many will not have the resources The Free Press had to carry out a diversity project.

But I have found that simply talking about the issue of diversity and immigration creates a certain understanding, if only to remind everyone that in this country we at one time were all considered “diverse” whether we were Irish, Swedish or German. MVJoe Spear is executive editor of Minnesota Valley Business. Contact him at [email protected] or 344-6382. Follow him on Twitter @jfspear.

■ Local Business memos/ Company news ...............................7

■ Business and Industry trends ........9

■ Minnesota Business updates ...... 10

■ Business Commentary ................ 12

■ Construction, real estate trends . 25

■ agriculture Outlook ..................... 26

■ agribusiness trends. ................... 27

■ Job trends .................................... 28

■ retail trends ................................ 29

■ Greater Mankato Growth ............. 30

■ Greater Mankato Growth Member activities ...................... 32

■ From the editorBy Joe Spear

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Fairfield being renovatedTMI Hospitality, a nationwide developer and

management company, is in the process of renovating its Mankato Fairfield Inn & Suites.

As part of the renovation, all public spaces and guest rooms will be remodeled with new carpet, paint, linens, and updated bathrooms. Additionally, the hotel will add a guest laundry facility, onsite fitness room, expand the lobby and breakfast areas, and refresh the exterior, including landscaping.

■ ■ ■

Farm Bureau members to serve on National Advisory Committees

Three Farm Bureau members from Minnesota were appointed to serve on the 2016 American Farm Bureau Federation’s Issue Advisory Committees.

Jeremy Geske of Le Sueur County was appointed to complete his two-year term on the AFBF Water Issue Advisory Committee. This reorganized committee will focus on Clean Water Act issues, national and regional water storage programs, Army Corps of Engineers water related efforts and flood control.

■ ■ ■

Two join Pioneer BankMike Kunkel has

joined Pioneer Bank as a vice president, ag/business banker in the bank’s North Mankato location.

Kunkel has a Bachelor of Science degree from Minnesota State University and has

completed the Graduate School of Banking at the University of Wisconsin in Madison.

Dan Benrud has joined the bank as an assistant vice president, ag/business banker in the Pioneer Bank’s Mapleton location.

Benrud graduated from Maple River High School in 2001 and from Minnesota State University where he earned a degree in Corporate Finance.

■ ■ ■

Bartlett keynote speakerShelly Bartlett owner and stylist at INdiGO Organic in

Mankato was a keynote speaker at Intelligent Nutrients International distributors conference in Minneapolis. Some of those in attendance were from Canada, London, United Kingdom, and Hong Kong.

Norland joins GMGBridget Norland has been selected as Greater Mankato

Growth’s (GMG) new Marketing & Communications Coordinator.

Norland brings with her a proven and diverse background in various marketing and project management roles. She has a foundation and degree in graphic design, 10 years in web design, programming and management as well as many years’ experience in planning, producing and analyzing project success. She has worked at Corporate Graphics Commercial, VoyageurWeb and most recently at Angie’s Artisan Treats.

■ ■ ■

Wihlm graduates from academyStacy Wihlm, executive director at

Vista Prairie at Monarch Meadows in North Mankato, was recognized at the LeadingAge Minnesota Institute & Expo for her graduation from the LeadingAge Leadership Academy. The Leadership Academy is a developmental program specifically designed to cultivate high potential leaders in the field of aging services.

She has more than 20 years’ experience in the healthcare industry.

In 2011 she was awarded the Distinguished Service Award from the Care Providers of Minnesota.

■ ■ ■

Lime Valley takes top honorsLime Valley Advertising of Mankato received eight

Service Industry Advertising Awards for communication excellence this year. This is the 12 year that the SIAA has recognized Lime Valley’s creative accomplishments in advertising. Over those years Lime Valley has garnered 57 SIAA awards, more than any other agency in Minnesota.

The SIAA is a national competition that honors service industry providers for their contribution to marketing and advertising. This year judges reviewed over 1,700 entries from 500 agencies for execution, creativity, quality, consumer appeal and overall breakthrough.

■ ■ ■

Duncanson honoredThe Minnesota Corn Growers Association recognized

three individuals for their outstanding contributions to agriculture and corn farming, including Karl Duncanson.

Duncanson was named co-recipients of the Golden Kernel Award, which is awarded to individuals who were at one time directly involved with Minnesota Corn. Duncanson was a third-generation farmer in Mapleton who served on the Minnesota Corn Research & Promotion Council. He died in a car accident in May of 2015.

■ Local Business People/Company News

Mike Kunkel Dan Benrud

Stacy Wihlm



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Sowers promoted at U.S. BankU.S. Bank

promoted Bryan Sowers to commercial team lead to its Mankato and Fairmont markets. In this role, Sowers will also assume the responsibilities as Mankato market

president.Sowers is an active member in the

Mankato community; including involvement with Mankato Area Foundation as past board chair, the Mankato Area Foundation as a member of the Development Committee, Leisure Education for Exceptional People volunteer and a youth soccer, baseball and basketball volunteer coach.

Sowers has been with U.S. Bank for 12 years.

■ ■ ■

Local repair shops honoredEach year, the AAA Clubs of

Minnesota recognize a select number of Approved Auto Repair facilities for their business integrity, professional standards in automotive repair, outstanding customer service and community involvement.

In Minnesota, 15 Approved Auto Repair shops have earned the Top Shop honor for 2015.

They include Autotronics of Mankato and St. Peter, Clipperton’s Auto Repair, St. James, and Elysian Auto Service.

■ ■ ■

Haynes hired at SouthPointSouthPoint Financial Credit Union

welcomed Brad Haynes as the new commercial loan officer/data analyst. He fills the position that Randy Reinarts left when he transitioned to the Sleepy Eye Branch President role in December.

Haynes comes to SouthPoint with 10 years of banking experience including Wells Fargo, Affinity Plus Federal Credit Union, and United Prairie Bank. In his new role, he will be working with farmers and businesses.

Bryan Sowers



EconomyGDP falls

The Bureau of Economic Analysis reported that real GDP increased at an annual rate of 0.7 percent in the fourth quarter of 2015, down from 2 percent growth in the third quarter. The fourth quarter increase reflected positive contributions from personal consumption expenditures, residential fixed investment, and federal government spending.

The forecast is for real GDP grows at 2.5 percent in 2016 and 3.1 percent in 2017, up from 2.4 percent in 2015.

Real disposable income grows by 3.1 percent in 2016 and by 3.3 percent in 2017.

Total industrial production grows by 0.4 percent in 2016 and by 3.4 percent in 2017.

Projected growth in nonfarm employment averages 1.6 percent in 2016 and 1.3 percent in 2017.

EnergyCrude still dropping

North Sea Brent crude oil prices averaged $31 per barrel in January, a $7 decrease from December and the lowest monthly average price since December 2003. Brent crude oil prices averaged $52 a barrel in 2015, down $47 from the average in 2014.

Growth in global liquids inventories, which averaged 1.8 million barrels per day in 2015, continues to put downward pressure on Brent prices.

Brent crude oil prices are forecast to average $38 a barrel in 2016 and $50 in 2017. Forecast West Texas Intermediate crude oil prices are expected to average the same as Brent in both years. However, the current values of futures and options contracts continue to suggest high uncertainty in the price outlook.

Gas at 7-year lowThe average retail price of U.S. regular gasoline reached

a seven-year low of $1.82 a gallon in February. It is expected to rise through the spring.

More use of natural gasFollowing a warm December, natural gas storage

withdrawals picked up in January, when temperatures were seasonably cold. Inventories fell by 211 billion cubic feet for the week ending January 22. This was the largest withdrawal so far in the 2015-16 heating season.

U.S. total natural gas consumption will averages 76.4 billion cubic feet per day in 2016 and 77.3 billion in 2017, compared with 75.4 billion in 2015. Increases in industrial sector consumption drive total consumption growth in 2016 and 2017. Industrial sector consumption of natural gas increases by 3.3 percent in 2016 and by 2.3 percent in 2017, as new projects in the fertilizer and chemicals sectors come online.

■ Business and Industry TrendsElectricity use down

Many households, especially in the southern states, use electricity for space heating. Despite last month’s snowstorm, average heating degree days during the first quarter of 2016 are expected to be 12 percent lower than in the same period last year, contributing to first-quarter electricity sales to the residential sector that are 6 percent lower.

For the entire year, residential electricity sales will fall by 0.3 percent in 2016 and then increase by 2.4 percent in 2017.

Forecast U.S. retail electricity sales to the commercial sector rise by 0.9 percent in 2016 and by 1.2 percent in 2017.

Ethanol production flatEthanol production averaged an estimated 965,000 barrels

per day in 2015, and it is forecast to average close to that level in both 2016 and 2017. Ethanol consumption averaged 910,000 barrels per day in 2015, and it is forecast to average more than 920,000 in both 2016 and 2017.

This level of consumption results in the ethanol share of the total gasoline pool averaging 10 percent in both 2016 and 2017.

There is not expected to be a significant increases in E15 or E85 consumption through 2017.

Biodiesel production upBiodiesel production averaged 84,000 barrels per day in

2015 and is forecast to average 107,000 barrels per day in 2016 and 112,000 in 2017. Net imports of biomass-based diesel are expected to rise from 28,000 barrels per day in 2015 to 47,000 in 2016 and to remain at that level in 2017.

CO2 emission downEmissions of CO2 declined by 2.2 percent in 2015.

Emissions are projected to increase by 0.5 percent in 2016 and in 2017. These forecasts are sensitive to assumptions about weather and economic growth.

Using less coalCoal consumption decreased by 12 percent in 2015, mainly

as a result of a 12 percent drop in electric power sector consumption. Coal consumption in the electric power sector is forecast to remain relatively unchanged in 2016 and 2017, as increases in consumption because of rising natural gas prices are offset by reductions in consumption because of growing renewables generation and coal-plant retirements.

Retirements of coal-fired power plants, because of increased competition with natural gas generation and the implementation of the Mercury and Air Toxics Standards, reduce coal-fired generation capacity in the forecast period.

Slower growth in world coal demand and lower international coal prices have also contributed to a decline in U.S. coal exports. Lower mining costs, cheaper transportation costs, and favorable exchange rates are expected to continue to provide an advantage to mines in other major coal-exporting countries compared with U.S. producers over the next few years



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■ Verizon earnings upCapping a year of change, Verizon

Communications reported fourth-quarter 2015 earnings of $1.32 per share.

Fourth-quarter 2015 EPS results compare with a loss of 54 cents per share in the fourth quarter of 2014.

In 2015, Verizon invested approximately $28 billion in spectrum licenses and capital for future network capacity, in addition to the more than $4 billion acquisition of AOL Inc. in June. Over that same time, the company reduced its leverage ratio and returned more than $13.5 billion to shareholders in the form of dividends and share repurchases.

■ ADM earnings take hitArcher Daniels Midland Company

stock dropped after the company disclosed its financial performance for fourth quarter of fiscal year 2015. It missed analysts’ expectations for both top and bottom line.

The food processing company had earnings per share of $0.61 for the quarter, compared to the consensus estimate of $0.64. The company also disappointed significantly in its third quarter earnings release.

Archer Daniels noted that capital expenditure for 2015 was $1.1 billion, compared to $900 million in 2014.

As for fiscal year 2016 plans, the company raised quarterly dividend to $0.3 per share, an increase of 7 percent compared to 2015. It also plans to buy back $1-1.5 billion in common shares.

■ Amazon bookstores?General Growth Properties chief executive, Sandeep

Mathrani, backtracked on comments he made about possible by Amazon.com/

General Growth owns and manages properties across the nation, including River Hills Mall in Mankato.

Mathrani, responding to an analyst’s question on a conference call, said that Amazon planned to open 300 to 400 bookstores.

An Amazon spokeswoman said on Tuesday that the company does not comment on “rumors and speculation.” Mathrani said he was not speaking on behalf of Amazon when he made the statements.

■ Johnson improves earningsJohnson Outdoors reported

that strong pre-season demand for new fishing products helped drive increased revenue, but the

Wisconsin-based manufacturer of outdoor recreation products still ended the first quarter of fiscal 2016 with a net loss.

Strong pre-season sales of products in the Humminbird brand helped drive an improved quarter for Johnson Outdoors Inc.

The net loss of $534,000 was a major improvement from the $4.2 million loss during the same period in fiscal 2015. The company’s earnings improved from a loss of 42 cents per diluted share to just a 5 cent per share loss.

Revenues for the quarter were $85.3 million, a 20 percent increase from the same quarter in 2015. The jump in revenue was driven by $58.6 million in sales for the marine electronics segment.

The watercraft segment had revenue up 17 percent to $6.4 million while the outdoor equipment segment was down slightly at $6.3 million.

■ Fastenal strugglingA slowdown in the

manufacturing sector is hitting Fastenal.

Fastenal has, however, seen its growth rate hold up better than those of its competitors.

First quarter and second quarter revenue growth for Fastenal (9 percent and 5 percent) came in well below the 14 growth seen in the quarter before those. Third quarter revenue was up less than 2 percent and fourth quarter sales were down slightly.

■ General Mills thinks smallGeneral Mills is launching a new venture capital arm to

make quiet bets on small rivals that could someday become big players in the grocery store.

In a new strategy firmed up about three months ago, a General Mills business unit called 301 Inc. will take investment stakes in very small regional startups that are looking for capital to grow, according to Fortune.

“We have found that more and more innovation was coming from small companies,” says John Haugen, vice president and general manager of 301 Inc. “There were ways for us to partner and provide growth capital.”

General Mills wouldn’t confirm if it’s already made any investments under its new VC unit, though it has made a test run of sorts with a minority stake in plant-based food maker Beyond Meat. Since their partnership started about two years ago, General Mills has helped Beyond with supply chain challenges and is currently working on new products that General Mills hopes will hit the market by early 2016.

■ Target leadership transformedTarget chief executive Brian Cornell has remade his inner

circle at Target Corp. headquarters.The latest change came with the announcement of the

immediate departure of Tina Tyler, who was elevated in 2011 by Cornell’s predecessor to be head of stores for the Minneapolis-based retailer.

Tyler worked at Target for nearly three decades. Cornell named Janna Potts, another longtime Target executive most recently in human resources, to succeed Tyler.

With the appointment of Potts, five of the 10 executives who make up Cornell’s top leadership team are either new hires or were promoted since he took the company’s reins in August 2014.

■ Minnesota Business Updates



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A common request has been to specify how to respond to online reviews and complaints. Jay Baer, author of “Hug Your Haters,” says that “not

responding to a customer’s complaint on Twitter is like hanging up the phone on him – with millions watching.”

No matter the size of your business, your success will always lie in your ability to deal with customers. In an age when consumers have so many different options they can turn to, one factor that can significantly set you apart is effective, reliable customer service. Remember that online complaints are much different than phone or even email complaints. These are public and can quickly spiral out of control thanks to social media. If you can effectively handle a customer’s online complaints with hundreds, thousands, or even millions potentially watching, it isn’t just customer service, it’s also marketing. Baer has two rules.

Don’t deleteDo not delete any online complaints about you, no

matter how tempting that might be. The only exceptions to this rule are obscenities, profanities, bigotry, and posts that call out employees’ private information.

If you delete a complaint on your blog or Facebook page or elsewhere, that’s the opposite of good customer service. That’s telling the customer that he or she doesn’t matter, and it’s inviting him or her to find another forum and get louder somewhere else. (If you don’t believe me, check out the “United Breaks Guitar” video on YouTube.)

Instead of deleting complaints, here’s what you do:

Listen, apologize, solve, thank Listen: Use the social Web to listen for complaints

made directly to you and indirectly about you. Search your company name on Twitter, and actively review your Facebook page and blog and any forums in your industry. Pay attention to every site online where people might be talking about you, so you can find each and every complaint and make sure none of them go ignored.

Apologize: Here is your chance for the company to shine. Look at the complaint as a gift, a moment to show off how responsive you are and how much you care about your customers. Everyone makes mistakes. Customers understand that. They just want you to fix it when you screw up. It really doesn’t matter who’s right or wrong; it matters how your customer feels. So say, “I’m sorry” (which is much more personal and better than “I apologize” or “Our apologies”), validate the customer, and vow to resolve the issue privately. This de-escalates the issue while still telling your customer (and anyone else watching) that you care.

For example, if John posts a complaint on your blog or Facebook page, you can respond, “I’m so sorry you’ve had a bad experience, John. That must feel awful. We’ve sent you a private message to help resolve this.”

Solve the problem: It’s important to say “I’m sorry,” but unless you can solve the problem, it won’t matter. Make sure you have a customer-centric organization that can resolve the problem, no matter what. Give the customer her money back. Give her a free month or two. Surprise and delight her with something awesome. No matter what, make sure you can leave the customer satisfied or, better yet, thrilled.

Thank the customer: Remember, the complaint really is a gift. It’s an opportunity to fix a problem, learn how to improve, and show the world watching how much you care about your customers. So genuinely thank your customer for hanging in there with you. This will make him or her feel heard and assure that despite the initial cause for complaint, you’re optimizing your chances of keeping him or her a customer for a long time to come.

When you follow these simple rules, you can turn an angry customer into a fan for life. More important, you can turn a potential online reputation issue into a marketing opportunity. MV

Swanson is a volunteer SCORE mentor and regional vice president

How to Handle Online Complaints

■ Business CommentaryBy Dean Swanson

Call [email protected]

Have Room to Grow Your Business



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Untapped labor poolBusinesses benefit from diverse communities

By Tim Krohn | Photos by Pat Christman

Creating a more diverse workforce is a common goal for business owners and leaders. But to many it seems like a daunting task with too many unknowns

and potential pitfalls.But those who’ve successfully

developed diverse employment at their business and those who help businesses prepare for it say that while some adjustments and planning are needed, it’s not the complex process

many fear.“It doesn’t have to be a big four-year project. You can

learn along the way. Take small steps,” said Bukata Hayes, executive director of the Greater Mankato Diversity Council.

“I don’t want business owners to see it as a big, long process. It’s

continual learning and growth.”Tom Blaido, production manager at Ameripride in

Cover Story

Tom Blaido is production manager at Ameripride in Mankato.



Mankato, has been through the transition and agrees.

“I took a chance on it and it worked out well. I thought, and still do, that it’s an untapped resource in our community.”

Karen Johnson, human resources manager at Imperial Plastics, said the large refugee workforce there has fit in nicely.

“It’s worked out well. I think all the employees are used to it. Culturally, obviously there are some differences, but it works out.”

And Barb Dorn, executive director of the Mankato YWCA, said diversity is proven to increase revenues for a business.

“If you look at a leadership structure, and it’s mostly one age and one race, statistics show their revenue will be less than if they had a more diverse makeup.

“It strengthens a company. There is proof that the more diversity, especially at the leadership level, the better their returns will be.”

Cultural shiftDiversity of the workforce

encompasses a range of

off it,” said Abdulkadir, who has been the key figure in working with businesses and refugees to establish more employment opportunities.

Marcia Highum, vice president of public support programs for MRCI Workforce, said there are several barriers for refugees to get into the workforce, including language, lack of GEDs, filling out applications and stereotypes. But when businesses work to employ them, they find a valuable workforce.

“They are eager to work and they

demographics: people of color, age, gender, sexual orientation, disability.

For businesses in the Greater Mankato area, a large group of African refugees, many from Somalia, offer a significant untapped labor pool.

Mohamed Abdulkadir, refugee program assistant with MRCI WorkSource, said there are about 2,000 refugee families living in the Mankato area.

“People want to get jobs. They’re taking welfare and they want to get

Employees at Ameripride, a uniform rental and cleaning company in Mankato, sort and hang clean clothes and prepare them for return to area businesses.



work incredibly hard.”MRCI WorkSource has had two

major successes in starting refugee work programs at Imperial Plastics and at Ameripride.

Recently at Imperial Plastics a group of refugees, many women, assembled cellphone covers that were produced in the plant. They are part of 125 refugees working there.

Sitting or standing around work stations, the group chats and jokes as they work.

Muhubbo Liban said the work is satisfying. “I like it. It’s a nice job. Nice people and nice leaders,” she said.

“We have fun. We work with our hands and talk. It’s good when you’re working and talking and having fun.”

At Ameripride, which rents and cleans uniforms and other fabrics for businesses, refugee workers are spread out over the sprawling facility.

It’s clear a jovial Blaido and the employees keep things light. Workers sort dirty clothes coming in and place them in giant bags that are hoisted up to a track that moves them to massive washing machines and then into dryers.

Blaido moves through the plant joking with employees. He gently

Karen Johnson of Imperial Plastics

Employees at Imperial Plastics assemble and pack cell phone cases.

teases a man for an incident that happened earlier in the day. Rather than hoisting just the big bag of clothes up to the ceiling, he accidentally hoisted an entire wood and metal cart to the ceiling.

“A good manager would have just lowered it down, but I had to make sure everyone came over to see it first,” Blaido joked, as the employee smiled and rolled his eyes.

MRCI Worksource worked with Ameripride and Imperial Plastics to set up programs to bring refugee workers in, even paying their salaries for a time while the companies evaluated the program.

Blaido and Johnson said there are issues that have to be dealt with, including overcoming language barriers, accommodating clothing worn by refugees, and religious practices that call for praying several times a day – prayer times that change throughout the year.

“We have a prayer room in place,” Johnson said. “We’re able to accommodate them.”

The employees aren’t given extra break time for prayer but are able to use their normal breaks when they need to for prayers.

Johnson said that with assembly work that works out fine as the line can be shut down for breaks without causing any problems. But she said for those who want jobs on the injection press machines, the break times can’t be so flexible because the machines can’t be shut down.

“They understand that. We have some (refugees) who work the presses, and they know if they take that job, the break times are set.


Some are more devout about praying and others aren’t. It’s like any religion.”

Ameripride also has a prayer room. “They take their breaks and have to be back in 10 minutes like everyone else’s breaks,” Blaido said. “That’s the only way to make it fair for everyone.”

When issues do arise, both companies rely on Abdulkadir to stop by and help work things out.

“Mohamed is a great resource,” Blaido said. “He comes on site and talks to people. He’s a great mediator.”

Abdulkadir said one thing he does is appoint a lead female and lead male at each worksite to deal with issues promptly. “It’s an immigrant with higher English skills. So they are right there if anyone has an issue and they can work with the supervisors before it becomes a bigger issue.”

Abdulkadir also works with other employees at the businesses to orient them about cultural and religious differences.

Blaido said all the employees at Ameripride have become comfortable with the differences. “There are dos and don’ts. They might do something I find offensive and they might find things I do or say that are offensive. So you step back and say,’I’m sorry, I had no idea and it won’t happen again,’” he said.

“There has to be that kind of understanding and respect. When you see what’s going on in the world, you have to tell people that it’s not these people causing those problems. They’re escaping tyranny. They didn’t want to leave their homes, they were forced out. They’re trying to make the best of it.”

While an anti-refugee/immigrant fervor is being spread in the national presidential campaign, Abdulkadir said the Mankato area remains more welcoming, thanks to work by churches, police and other groups.

“We don’t see that kind of hatred here. But we talk about it among ourselves, at home.” And he said the refugees know that racism and prejudice are relative things. “Where we came from is the worst. So if smaller things happened here, it’s no big deal.”

The glass ceilingDorn, of the YWCA, said a diverse workforce is about

more than just hiring people of color.“When people hear the word diversity, they go directly to

race. But it can mean age, economic status, culture, race, gender.

“Women are definitely a part of that. We don’t’ have the same struggles that the refugee and immigrant populations face, but there’s still a struggle.”

There are fewer women in leadership roles, but Dorn said that is often because of choices women make themselves, such as leaving the workforce for a time to raise children.

But she said there are internal issues businesses can address to help. “Flexible schedules, job sharing, cultural changes that would allow women to step into leadership because they’d be more comfortable with the structure of the company.”

Dorn said the local area fares pretty well when it comes to women in the “C-suites” of jobs – CEO, CFO, COO.

“We’re ahead of the curve in Mankato. Better than the state and the country. There’s definitely room for improvement, but it’s great to be in a city that values that.” MV

Bukata Hayes, executive director of the Greater Mankato Diversity Council, came to Mankato in 1994 to attend Bethany Lutheran College

and then went to St. Scholastica in Duluth. He returned in 2000 and later took the helm of the council, which started in 2004.He said that with a labor force shortage locally, the chance to hire a more diverse workforce is an opportunity for businesses.He said businesses can take a few steps to prepare itself.

Work with existing staff“The first thing is to prep the soil. A leader can’t just go out and hire people and bring them in if you haven’t worked with your existing employees. We can come in and help with that training.”

Make connections“The second thing is to make connections in the community to learn more.” He said that not only gives access to potential workers from diverse communities but improves the bottom line for a business.“If you’re trying to advertise to Latinos, where do you advertise? You learn the best places by having those connections.”

Start hiring“The third thing is to start hiring, training, have interns from within our diverse community. When you hire diverse people, you will draw a more diverse customer base, too,” Hayes said.“If you take these steps, you can learn along the way. It doesn’t have to be a big, long process.”

Making a plan for diversity

Bukata Hayes




Kristi Schuck and Marie Farley Christiansen, co-owners of WYSIWYG in downtown Mankato specialize in handcrafted, cold-pressed juice as well

as organic foods and beverages.Their 100 percent raw juices are

from certified organic non-GMO sources and the shop is also a gluten free zone. They also offer vegan and vegetarian options and cleanse packages.

They opened in January after an extensive remodel. WYSIWYG has a spacious interior and beautiful hardwood floors and photos adorn the right wall depicting two

families brought together through love, cancer, courage, death and hope.

“We firmly believe hope is where we begin,” Schuck said. “Here at WYSIWYG and in our daily lives. Embracing positivity and the energy it produces drives us to try harder, do better and experience

each day to its fullest. Hope keeps us together for the betterment of our families, communities and world. Hope is why we are here.”

Profile

By Heidi Sampson | Photos by Pat Christman

What you see is what you get

Juice bar focuses on fresh, organic

Marie Farley Christiansen is co-owner of WYSIWYG in downtown Mankato, a business she and Kristi Schuck recently opened.



Marie’s journey to juicingMarie married Bob in October of 1990. The two lived in

Wisconsin for much of their marriage. However, with three young children, Bob was diagnosed with stage four colorectal cancer in 2001.

At 36 years of age, he was given less than six months to live. The couple moved back to the Mankato area to be closer to family, as they began their battle with cancer. At the time he was diagnosed, Marie began looking at all aspects of their health for a more holistic approach to healing even though both knew radiation and chemo were very important to Bob’s recovery.

Her research led her to pursue healthier food options, as she came to realize the possible power and benefit for her husband’s health in organic juicing.

“At that time food options weren’t brought up for consideration when we sat down with our doctors to discuss what happens next. They talked of chemo and radiation. They did not discuss making healthier food choices, let alone the concept of juicing, that was totally unheard of at that time.”

In an attempt to make sure every avenue to recovery was pursued, the couple changed the entire family’s food intake to organic foods and raw juices with no gluten or sugars. Within days of the switch to healthier foods he began to feel better despite the radiation and chemo treatments.

For four years, Bob beat his doctor’s predictions before passing away at the age of 40 in 2005. Less than a month later – on what would have been Bob’s 41st birthday - Marie found herself grieving the loss of her husband and best friend. However, Bob wasn’t about to let Marie handle his birthday alone, he’d arranged for a gift to be delivered to Marie, a silver bracelet with the inscription of love and hope.

Kristi’s journey to juicingKristi met Wes Shuck while attending college at Gustavus

Adolphus College. They married upon graduation in 1997 and moved to Mankato. They were involved in the creation of several businesses, including Two Fish Studios and other projects focused on music, video and film, including the arts magazine Static.

In 2011, Wes was diagnosed with stage four-colon cancer at age 36. With a projected six months to live and three young daughters, Wes and Kristi also began to investigate more holistic approach to cancer recovery as a supplement to the radiation and chemo treatments. That brought them down the same path as Marie and Bob, as healthier food choices, organic, gluten free, and juicing also became a big part of their lives.

“When we started juicing all of us went on the same plan

to help support Wes. If this way of eating and living were better for him, it would be better for all of us. I remember seeing Wes the mornings after his chemo treatments, excited to face the day. The juicing seemed to give him extra vitality during those difficult moments,” Kristi said.

During Wes’s battle with cancer, Wes and Kristi began to attend the YMCA’s LIVESTRONG program, a free 12-week small-group health and fitness program for adult cancer survivors at any stage in their recovery. The LIVESTRONG program believes physical fitness is the gateway to help recovery, as physical fitness is the key to enhancing energy, attitude and the cancer survivor’s quality of life by focusing on the whole person and not just the disease. It was through

the program that Kristi and Wes met Marie, a LIVESTRONG instructor.

While Wes’s cancer became more manageable, Kristi also became a LIVESTRONG instructor at the YMCA. As LIVESTRONG instructors, Kristi and Marie began teaching their fellow participants about the benefits of juicing. It was through one of their juicing classes that the two realized what had been missing from the community while Marie and Kristi’s husbands had battled and were presently battling cancer - organic, gluten free food and the ability to acquire fresh juice on short notice - as both were well aware of the time commitment juicing required of them on a daily basis.

“It takes a lot to juice everyday,” Schuck said. “There were days when I just wanted to swing by somewhere and pick up juice that’s already been made.”

Wes battled his cancer for four years, passing away in 2015. During Wes’s battle with cancer,

Kristi recalls Wes telling their three daughters that he ‘hoped to be here tomorrow,’ with the idea of ‘hope’ as their family’s grounding daily principle. It was Wes’s unwavering belief in ‘hope,’ that eventually brought two families together and sparked a business idea capable of making organic, gluten free and juicing, easier and more accessible.

“We’ve been blessed with a community that supported us when we needed it most,” said Marie of their experiences with cancer. “For us, WYSIWYG offers a full circle moment, to offer our community healthier options.”

Today, Marie has remarried, expanding her family from three children to eight. Although Marie’s three children are grown, they offer Kristi’s children hope, looking to them for encouragement and guidance following the loss of their father.

“We’ve been very fortunate in this adventure,” said Kristi. “The community’s come out to support our endeavor, for which we are extremely grateful. But also, we couldn’t ask for better staff. Our staff has put in countless hours helping us get this business going. We are grateful for their passion and support.” MV

An employee makes ‘Pistachio Poppers,’ one of the several organic, gluten-free products sold in the store.



Kirk Marble has worked at Better Housekeeping Vacuums for 40 years and recently purchased the business.

By Nell MusolfPhotos by Pat Christman

Cleaning upAfter 40 years as employee, he bought the store

Back in the mid 1970’s, Kirk Marble was working at Randall’s grocery store on Riverfront Drive when he decided to

find a new job. A teenager at the time, Marble was ready to try something new so he walked over to Front Street and began his search.

“I stood at the end of Front Street facing north,” Marble recalled. “My plan was to walk up the left hand side of the street and put applications in every store I passed and then walked down the other side of the street on my way back and put in applications on that side.”

One of the first stores Marble passed was Better Housekeeping Vacuums located at 1022

South Front Street. Not thinking that he wanted to work in a vacuum cleaner store, Marble kept on walking. On his return trip,

after filling out several applications at various other businesses, he eyed Better Housekeeping Vacuums again, this time

opting to go inside and see if there was any work available for a high school student. There was and Marble began a career that has spanned more than 40 years.

“The owner, Mark Oachs, gave me a job buffing Kirby vacuum cleaners,” Marble said. “I think I made a $1.50 a machine.”

Over time Marble was promoted to repairman and learned the ins and outs of the

Spotlight



machines sold at Better Housekeeping.“I grew up around motorcycles,” Marble said, “so I

guess I did have some mechanical training. We had to figure things out on our own to keep the motorcycles going.”

Marble was appreciative of his first boss.“I’ve got to hand it to Mark,” Marble said. “He really

taught me everything he knew about vacuums and all of the other machines.”

After graduating from high school, Marble worked for Better Housekeeping Vacuums full-time and gradually moved up to sales.

“I loved it when I was moved to sales,” Marble said. “It was just so nice to get out of the workroom and see the sunshine again. I also liked talking to people and helping them solve their problems.”

Eventually Gale Eichhorst, or “Eich” as he was known, bought Better Housekeeping Vacuums and became Marble’s new boss.

“Eich was a super guy,” Marble said. “He was great to work for.”

When Eichhorst opened a second store in Albert Lea, Marble and his wife moved south to run the store but the timing wasn’t right.

“It was the mid 1980’s and a lot of farms were being foreclosed. The town was drying up right in front of us. It wasn’t a good time to open a new business,” Marble said.

After a while, the Marbles returned to Mankato and Marble returned to his position at the Mankato Better Housekeeping store. He hasn’t left since. Marble worked for Eich until June of 2014 when Eich sold the business to Marble. Going from employee to owner has not made a huge difference in Marble’s life.

“It’s pretty much the same thing,” Marble said. “A long time ago I found out that I didn’t hate going to work. I still don’t.”

Since buying the business, Marble has made a few changes, specifically to one side of the store that has new carpeting and an impressive display of vacuum cleaners.

“We call that the ‘fancy side,” Marble said. “Eventually we’ll make the other side of the store fancy too.”

In addition to Marble, Nate Arndt is another longtime employee with 20 years under his belt. Marble’s son, Tony, has also joined the business.

“Nate does everything—repairs, sales—whatever needs to be done. Tony has a few other businesses that he’s a part of and we’re glad that he’s part of this one too,” Marble said.

Better Housekeeping Vacuums not only sells vacuum cleaners, it also repairs machines and will make house calls for repairs or sales.

“We will definitely get in the car and go see a customer if they can’t bring their machine in to us,” Marble said. “Or we’ll go to a business and demonstrate a piece of equipment. Of course, if someone has a central vacuum system we’ll have to go to them if they need a repair.”

Among the vacuum cleaners that Better Housekeeping

Vacuum sells are what might be considered to be high end when compared to vacuums sold at discount stores. But Marble said that preconception can be misleading.

“If you buy a vacuum at a discount store, yes, you’re initially paying a lower price,” Marble said. “But you have to look at it for the long haul. Most vacuums sold at discount stores last an average of five years and when they break, people throw them out. Vacuums have become as disposable as Bic razors in our society. But if you spend a little more for a good machine, with proper maintenance you can have that machine for a lot longer than something that you can’t get fixed or you can’t get parts for. For example, if you buy a Kirby or a Riccar, that vacuum will go and go and go.”

While the world of vacuums doesn’t seem as if there would be any intrigue behind closed doors, Marble said that isn’t necessarily true.

“Oh, there’s plenty of stuff going on between people who make vacuums,” Marble said. “You’d be surprised how many lawsuits there are between vacuum manufacturers. One guy will make some pretty outrageous claims about what his vacuum can do and another company will sue him over making false claims. It happens all the time.”

Buying a vacuum from a store such as Better Housekeeping Vacuums doesn’t necessarily mean a huge price difference from what a consumer would pay at a discount store either. Marble said that Riccar vacuums start at around $279.

“We pride ourselves as a place where we can fix your vacuum cleaner,” Marble said. “If you buy a machine from us, if there are any issues with it you can come in here and we can talk about it. That isn’t the case when you buy a machine

from a discount store. We like to be able to fix what we sell. I do feel bad when people spend a lot on a machine that they’ve bought from someplace else that in the long run can’t be repaired.”

Over the years Marble has seen vacuums transition from having bags that were changed on a regular basis to the current trend of bagless machines.

“Bagless has taken off,” Marble said, “but what people don’t realize is that they have to empty the cup in a bagless machine approximately ten times more often than they have to change a bag. You also need to change filters on a bagless machine and you should wash the filter at least once a month.”

In addition to sales and repairs, Better Housekeeping Vacuums also has a commercial steam cleaner available for customers. The store is open Monday through Friday from 9 to 6 and Saturdays from 9 to 4. For Marble, owning the store he has worked at for virtually all of his adult life is a dream come true.

“I always wanted to stand at the helm and run the ship,” Marble said. “I’ve stuck with the business through thick and thin and plan to continue to do so. I know that I never want to leave Mankato again.” MV

Nate Arndt is a longtime employee who wears many hats at the South Front Street business.



Katie Boone in her office at Envision Lab

By Heidi SampsonPhotos by Darren Gibbins

Entrepreneurs going further togetherEnvision Lab

Katie Boone and Sara Nett, co-owners of Envision Lab, began their friendship while attending Minnesota State University’s gender & women’s

studies program. They were very active in campus community-building activities. Upon graduation in 2004, Katie who had also majored in urban and regional studies went on to pursue a Masters in

experiential education and a graduate non-profit leadership certificate. Sara went into the Masters program for public administration.

“I left the public administration program after three semesters,” said Sara. “I realized being in administration and changing things

from the top down, was never going to work when the

Feature



rubber hit the road. So, I left school. I moved back to North Dakota, did some non-profit work with domestic violence and became an entrepreneur in Minot where I opened an Arts Collective. I also worked as a freelance mixed media artist as well.”

After graduate school was complete for Katie, she jumped into the non-profit sector and began working at a homeless shelter. While there she saw first-hand how broken systems – such as those designed to help people in need - really impacted people’s lives. As fate would have it, Katie landed a position with the United Way, an organization that saw the big picture and helped to fund many community programs.

“Each year we would review 63-74 funding applications, in which $2 million would go toward human service programs. However, every year we would hear about these gaps in services. So we would innovate by designing a new initiative for the gap by leveraging volunteers and creating collaborations. In a way, I was always participating in start-up work. I loved it. I worked for United Way for about four years. During my last year, I received an opportunity to attend an art of hosting or art leadership program. We learned how to bring community voices together to really create a systemic shift or systemic change in society.”

Once the program was over, Katie recognized the moment as an opportunity for change. She could see how all of her past degrees melded together to form the creation of her own consulting practice.

“I loved working from home but felt isolated after a while,” said Katie. “I began to notice that other communities

Katie Boone, right, speaks with Envision Lab Mod Squad member Kate Taylor at the space.

had Envision Lab type models – spaces where people could go and work without having the overhead of their own office space. One night, I was wide-awake at 3 a.m. so I went to my garage and started to map out what Envision Lab was, what the model could look like, what kind of membership structures there would be and what it would take to get Envision Lab off of the ground. By the time the birds started singing, I thought there it is.”

After the initial creation moment, a dream team of Envision Lab supporters began meeting in Katie’s garage to plan and work out any kinks in her business proposal. Katie also began working on a grant for the Southern Minnesota Initiative Foundation, in which they awarded Katie a $20,000 incentive grant in late 2014.

“By January of 2015 we had our space identified. We came into the Ridgley Building and did a big remodel. $20,000 is not a lot to get a business going, but it is enough to put a carrot on a stick and make you take the jump.”

E n t r e p r e n e u r i a l collaboration

Throughout the design phase of Envision Lab, Sara and Katie reconnected. This past January Sara

became partner at Envision Lab as she moved her family back to Mankato from Minot, North Dakota. As an organization Sara leads as the grounding factor while Katie heads up community and entrepreneurial collaborations. Over the last year, Envision Lab has grown their membership base to 25 members. However, their plan is to turn Envision Lab into a cooperative.

“We engaged the community in what we call the Master Plan Design Lab,” said Katie. “It was an opportunity for us to hear from the community what else this space could be. We heard a lot of good things about Envision Lab. However, we were more interested in what came after, as community members expressed their concerns and needs. Through that meeting, we began to make Envision Lab into an entrepreneurial eco system that helps navigate people through the start-up phase of business development, the doing phase - to where they are able to be self-sufficient and finally get their businesses out into the community.”

One of Envision Lab’s success stories is Natalie Pierson of Vagabon Village, on Riverfront Drive. In February of 2015, Katie realized Natalie had her inventory, her plan, and a rock solid idea for her business. Katie encouraged Natalie to come into Envision Lab to incubate her idea.

“Natalie came in and was able to set up a mock store in one of the suites downstairs,” said Katie. “She was able to see her idea as tangible and doable. What Natalie needed was a space to crack her business idea open. You don’t have to start up a business alone, you can come into Envision Lab’s entrepreneurial eco system that helps new businesses



xxxxxxxx

get connected to others. What we’ve done is shift how Envision Lab works. In the art of hosting program, there is an African proverb, ‘If you want to go fast go alone. If you want to go further, go together.’ I think that’s what’s alive here. We’ve created a space for them to go further together.”

Since June, Envision Lab has helped to stabilize eight new businesses/organizations and have helped to create 10 full time jobs. This year, if they get the capital to keep Envision Lab going, they have the potential to help start more businesses. Right now, Envision Lab is working strategically to build their capacity before expansion. One of their biggest projects is the artist collective – a space for artists to come and sell their work. Once the artist collective is stabilized, Envision Lab hopes to offer a maker collective - a space for those who create with metal, glass,

wood, pottery and other forms. Ideally, the maker collective would be a workshop co-working space. Currently, there is a Healing Arts Collective downstairs, in which five independent businesses have come together to share a space.

“Entrepreneurial collaboration is about job development and stabilizing families,” said Katie. “We know that by 2020, 40 percent of the work force will be freelance. Those are your start-ups, your entrepreneurs who’ve been sitting with an idea and a dream. Provided the right resources, support and tools anything is possible. I’ve always sought to answer the question, how do you create communities where everybody feels valued, where they feel like they belong and that they can contribute? That’s what we do, we ignite that passion for people.” MV

A KEY TO YOUR TREASURE A key to your new home awaits, and we can help you get there. Finance and insure your home with experts you can trust.

Mary RettmerNMLS# 476964 Mortgage [email protected]

Kristin Bauer Insurance [email protected]



Construction/Real Estate

C. Sankey

3.0

3.5

4.0

4.5

5.0

5.5

DNOSAJJMAMFJ

01000020000300004000050000600007000080000

DNOSAJJMAMFJ 0

1000

2000

3000

4000

DNOSAJJMAMFJ

0

55

110

165

220

275

DNOSAJJMAMFJ 0

10

20

30

40

DNOSAJJMAMFJ

0

1000

2000

3000

4000

DNOSAJJMAMFJ0

4500

9000

13500

18000

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Source: City of Mankato

Residential building permits Mankato (in thousands)

- 2014 - 2015

Source: City of North Mankato

Residential building permits North Mankato(in thousands)- 2014 - 2015

Source: Realtors Association of Southern Minnesota

Existing home sales: Mankato regionInformation based on Multiple Listing Service and may not refl ect all sales- 2015 - 2016

Source: Cities of Mankato/North Mankato

Housing starts: Mankato/North Mankato- 2014 - 2015


Commercial building permits Mankato (in thousands)

- 2014 - 2015

Source: City of North Mankato

Commercial building permits North Mankato(in thousands)- 2014 - 2015

Source: Freddie Mac

Interest Rates: 30-year fi xed-rate mortgage— 2015 — 2016

Includes single family homes attached and detached, and town homes and condos

Source: Minnesota Foreclosure Partners Council

Foreclosures: 2014 Year End

1011927702543393624

72212147282422277

-29%+11%-22%-33%+12%-44%-44%-25%-71%

Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwan

County 2013 2014 Percent change

$10,779$5,226

$1,030

$250

103

112

59

$1,119$2,268

$5.5$138

3.6%

3.7%



Concern continues to increase for fallout from the struggling agriculture economy, and the impact that it may have on farm families, ag-related businesses,

and rural communities.Many crop producers are coming off a negative profit

year in 2015, and profit margins in 2016 for both crop and livestock producers continue to project at negative levels. Ag lenders are becoming increasing concerned with the declining farm economy, as well as the future viability of some farm operations.

Some of the USDA estimates for 2015 farm income and expense levels include • Total U.S. net farm income for 2015 is estimated at

nearly $56 billion, which is down 38 percent from total net farm income in 2014, and would be at the lowest level since 2002.

• Net cash income for 2015 is estimated to be down 28 percent, compared to 2014 levels, primarily due to a reduction of over $43 billion in crop and livestock receipts in 2015.

• One piece of good news was that total cash expenses for farm operations declined by approximately 2 percent in 2015 from the previous year, which were headlined by a 9 percent drop in feed costs, an 8 percent decline in fertilizer expenses, and a 29 percent drop in fuel expenditures.

• Government farm program payments are expected to total nearly $10.8 billion for 2015, which would represent an increase of 10 percent from the previous year. It should be noted that the direct payments in the previous Farm Bill were eliminated in 2014, and replaced with the new variable payments under the 2014 Farm Bill. More than 98 percent of the corn and soybean acres in Minnesota are enrolled in the new county-based agriculture risk coverage (ARC-CO) farm program option. Significant ARC-CO payments for the 2014 crop year were received in October, 2015, by most farm operators in Southern Minnesota.

• Total U.S. agriculture exports for 2015 are projected to decline by 8 percent from the record ag export level of $152.5 billion; however, ag exports are still likely to account for nearly one-third of net farm income in 2015. Driven by strong commodity prices and favorable economic conditions in foreign countries, ag export levels nearly tripled from 2000 to 2014.

• Overall farm wealth in 2015 declined by about 3 percent, which included modest declines in land values in farm real estate values in some areas of the U.S.

In many areas of the Upper Midwest, including southern Minnesota, 2015 crop yields were 10-20 percent above normal, which somewhat helped offset the impact of sharply declining crop prices. However, much of the 2015 corn and soybean crop is still in storage on farms, or in commercial storage, and has not yet been sold. Grain price levels have continued to decline since January 1, further

lowering the value of the grain that is in storage. USDA is currently projecting further declines in net

farm income, as well as in farm wealth, for 2016, due to lower commodity prices for both crops and livestock. Fairly large government farm program payments are expected again in 2016 for many crop producers on the 2015 corn and soybean crop, resulting from the low commodity prices. However, 2016 ARC-CO payments for many southern Minnesota crop producers will likely be lower than those received in 2015, due to the excellent crop yields in 2015.

Cash rental rates for 2016 have eased somewhat compared to 2014 and 2015 rental levels; however, many rental rates have remained at fairly high levels, which will make profitability very difficult for the 2016 crop year. Many crop producers are facing breakeven prices near $4 per bushel or higher on cash rented land, and soybean breakeven prices well above $9 per bushel, assuming normal average crop yield levels. In mid-February, local cash grain prices in Southern Minnesota for the fall of 2016 were below $3.50 per bushel for corn, and below $8.50 per bushel for soybeans.

The level of “working capital” for may crop operations has declined considerably in the past two years. Most ag lenders like to see the working capital to gross farm revenue ratio for the farm business above 30 percent. Achieving a ratio of this level was not a problem for most crop producers from 2007 to 2014, however, that has changed in the past couple of years. In 2016, lower commodity values for crops and market livestock, along with increasing levels of operating debt, is putting pressure on working capital levels for many farm operators.

Another farm financial ratio that most ag lenders are monitoring very closely is the “term debt coverage ratio.” This ratio is the dollar amount available for term debt principle and interest payments, following farm and personal income deductions for operating expenses and family living, compared to the dollar amount required for principle and interest payments on all term loans and real estate loans. Ideally most ag lenders desire this ratio to be 125 percent or higher, to allow for a bit of a “cushion” for the farm business. If the ratio drops below 100 percent, it could spell trouble for the farm operation to meet their debt repayment obligations for a given year.

Many farm operators took advantage of strong farm profits from 2010-2013, along with favorable depreciation provisions and low interest rates, to update farm machinery and facilities. The excellent farm profits and low interest rates also were favorable factors for purchasing farm land during that time frame. While farmers invested a considerable amount of earned income into these farm capital investments, there also was a significant amount of term debt and real estate debt added during those years. For some producers, this has significantly increased the annual principle and interest payment commitments that need to be met each year, which can be a challenge in very

Farm financial stress is likely to continue

■ Agricultural OutlookBy Kent Thiesse



50

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Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points. C. Sankey

Corn prices — southern Minnesota

Source: USDA

(dollars per bushel)— 2015 — 2016

Iowa-Minnesota hog prices

Source: USDA

185 pound carcass, negotiated price, weighted average— 2015 — 2016

Milk prices

Source: USDA. Based on federal milk orders.

Minimum prices, class 1 milkDollars per hundredweight

— 2015 — 2016

Soybean prices — southern Minnesota

Source: USDA

(dollars per bushel)— 2015 — 2016

$71.88

$63.61

$3.18

$3.51

$15.91

$24.33

$8.12

$9.41

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tight profit years.The reality is that unless we have some unforeseen

improvement in grain prices in the coming months, or changes in the farm economy, we are likely to continue in an environment of very tight or negative profit margins in crop production for the balance of 2016, as well as into 2017. Farm operators that are facing some financial challenges, or expect difficulty in meeting loan payment commitments, need to address those issues sooner than later. The sooner farm financial issues are dealt with, the more options that usually exist to address those concerns.

It is important for producers to communicate and work with their ag lender and other professionals to look at alternatives, and to develop a strategy for the farm operation. It is also important to communicate with farm partners, spouses, and other family members regarding the farm

financial situation. If adjustments need to be made in family living expenses or non-farm income, all family members need to be made aware of the potential changes for the family.

The good news is that most experts expect less than 10 percent of farm operations to have serious difficulty in getting financed for the 2016 crop year. However, many more operations will need to make adjustments in their farm operation in 2016, if the tight profit margins continue, or they could face more serious financial challenges in 2017. MV

Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal. 507- 381-7960; [email protected]



Employment/Unemployment

C. Sankey

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100000

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*Categories don’t equal total because some categories not listed.

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services.

Initial unemployment claimsNine-county Mankato region

37518856

217836

41424852

203917

+10.4%+32%-7.0%-6.5%+9.7%

ConstructionManufacturingRetailServicesTotal*

Major Industry

January Percent change‘14-’15‘15 ‘16

*Categories don’t equal total because some categories not listed.

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services.

Minnesota initial unemployment claims

6,9623,0181,5765,630

17,178

7,4463,3911,4325,420

17,689

+7.0%+13%-9.1%-3.7%+3.0%

ConstructionManufacturingRetailServicesTotal*

Major Industry

January Percent change‘14-’15‘15 ‘16

Local non-farm jobsNine-county Mankato region

- 2014 - 2015 Minnesota Local non-farm jobs(in thousands)

- 2014 - 2015

Local number of unemployedNine-county Mankato region

- 2014 - 2015 Minnesota number of unemployed - 2014 - 2015

Mankato/North Mankato Metropolitanstatistical area

(includes all of Blue Earth and Nicollet Counties)

Unemployment rates Counties, state, nation

Source: Minnesota Department of Employment and Economic Development

2.6%

57,473

1,541

2.5%

58,179

1,474

Unemployment rate

Number of non-farm jobs

Number of unemployed

December 2014 2015

Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwanMinneapolis/St. PaulMinnesotaU.S.

2.7%4.1%4.3%5.3%4.1%2.4%4.4%4.2%4.4%3.2%3.6%5.4%

2.5%4.0%4.1%5.3%4.5%2.3%4.2%4.5%4.7%3.1%3.6%4.8%

County/area December 2014 December 2015

129,173129,932

2,9202,894

4,9033.629 96,303

89,332



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Retail/Consumer Spending

$539

$57,200$65,500

977870

$46,657

$43,418

$2.18

$1.39

$2.18

$1.45

(In thousands)

C. Sankey

Vehicle Sales Mankato — Number of vehicles sold

Source: Sales tax fi gures, City of Mankato

- 2014 - 2015

Lodging tax collections Mankato/North Mankato


- 2014 - 2015

Gas prices-Mankato

Source: GasBuddy.com

— 2015 — 2016

Gas prices-Minnesota — 2015 — 2016

Mankato food and beverage tax


- 2014 - 2015

Sales tax collections Mankato

Source: Sales tax fi gures, City of Mankato

- 2014 - 2015

Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

Archer Daniels

Ameriprise

Best Buy

Crown Cork & Seal

Consolidated Comm.

Fastenal

General Growth

General Mills

Hutchinson Technology

Itron

Johnson Outdoors

3M

Target

U.S. Bancorp

Wells Financial

Winland

Xcel

Stocks oflocal interest Feb. 12Jan. 12

Percent change

-2.5%

-16.0%

+8.7%

-1.6%

+0.7%

+11%

-1.2%

+2.5%

+7.2%

+13.3%

-2.3%

+8.8%

-0.7%

-2.2%

-6.0%

-11.0%

+5.9%

$32.45

$80.15

$28.12

$45.02

$19.44

$43.04

$25.56

$56.89

$3.72

$35.50

$20.90

$153.96

$69.95

$39.09

$31.00

$1.78

$38.81

$33.27

$95.47

$25.88

$45.74

$19.33

$38.84

$25.87

$55.49

$3.47

$31.33

$21.40

$141.45

$70.45

$39.98

$32.96

$2.00

$36.64

$463


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GRAND OPENING

Dairy Queen2001 Adams Street, Mankato

NEW BUSINESS

Growth in Greater Mankato

NEW LOCATION

BLK Electric1990 Lookout Drive, North Mankato

Bounce Town1860 Adams Street, Mankato

NEW LOCATION

Mankato Acupuncture Clinic709 South Front Street, Suite 5, Mankato

CavaliersNeutral Path Communications3 Civic Center Plaza, Suite 204Mankatoneutralpath.net

Big Dog Sports Cafe1712 Commerce DriveNorth Mankato

Investment Management & Associates1445 Lookout Drive, North Mankatoinvestmankato.com

Ummie’s Bar & Grill530 South Front Street, Mankatoummiesmankato.com

MDC Real Estate Services100 Warren Street, Suite 200Mankatomdcrealestate.com

Greater Mankato Growth MembersCavalier Calls on the Newest


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MN Valley Business • March 2016 •33

Business After and Business Before Hours gives representatives from GMG member businesses at the Engaged Level or higher an opportunity to get together with one another to exchange ideas and learn about each other’s businesses. For more information on these and other member events, visit greatermankato.com/events.

January Business After Hours hosted by Monarch Healthcare Management at Laurels Edge

January Business Before Hours hosted by Pawn America

March 16 Friesen’s Family Bakery & BistroApril 20 MRCI - East ParkMay 18 Mankato ClinicJune 15 Realtor Association of Southern MNJuly 20 City of Madison LakeAugust 17 Ridley, An Alltech CompanySeptember 21 Walmart Distribution CenterOctober 19 Emergent NetworksNovember 9 Mayo Clinic Health SystemDecember 21 School Sisters of Notre Dame Central Paci c Province

2016 Business After Hours Sponsored by:

2016 Business Before Hours Sponsored by:

7:30 - 9:00 am5:00 - 7:00 pmMarch 1 Wow! ZoneApril 5 The Loose Moose Saloon & Conference Center May 3 CCF BankJune 7 Chankaska Creek Ranch & WineryJuly 5 August Schell Brewing at Pub 500August 2 MinnStar BankSeptember 6 Verizon Wireless Event CenterOctober 4 Toppers PlusNovember 1 BankVistaDecember 6 Eide Bailly

Visit the GMG blog at greatermankatoblog.com

As the regional chamber of commerce and economic development organization we are committed to Advancing Business for a Stronger Community. The posts you’ll find on this site come from many focus areas and are staff authored.


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annual meeting Making Headlines

March 10, 2016 - 11:30 am - 1:00 pm


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